The Nationwide Samsung Electronics Union (NSEU) has announced a one-day strike on June 7, marking the first time Samsung Electronics workers in South Korea will walk out over a pay dispute.
The union, representing 28,000 workers, which is just under a quarter of Samsung's domestic workforce, has called for the strike following failed negotiations over pay and bonus arrangements, Reuters reports.
Samsung Union to Stage Walk Out Over Pay Dispute
A Samsung flag (R) flutters outside the company's Seocho building in Seoul on April 30, 2024. Samsung Electronics said on April 30 that its first-quarter operating profits had risen nearly tenfold year-on-year -- a 931.8 percent increase -- amid recovering chip prices and growing demand.
The announcement was made during a live-streamed press conference on the union's official YouTube channel. The NSEU has expressed frustration over the company's lack of willingness to negotiate fairly.
Union representatives expressed that the company's unwillingness to negotiate is no longer acceptable, and they are committed to advocating for workers' rights and interests.
Son Woomok, a union leader, stressed the significant presence of NSEU members in Samsung's key semiconductor division. Son told CNN that they are calling for transparent and equitable performance bonuses and wage increases.
He added that there has never been a proper wage negotiation, and outcomes are typically announced unilaterally by the labor-management council, which does not include union representation.
Samsung Union's Demands, Samsung's Response
The union's demands include not only wage increases but also more transparent performance-based bonuses and an additional day of annual leave. These demands follow a 5.1% wage increase offered by Samsung earlier this year, which the union found insufficient.
In response to the strike announcement, a Samsung spokesperson told CNN that, "The company remains committed to engaging in good faith negotiations with the union and is making every sincere effort to come to an agreement."
However, the union has accused Samsung of failing to present a compromise plan during the most recent negotiations.
People walk past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 30, 2024. Samsung Electronics said on April 30 that its first-quarter operating profits had risen nearly tenfold year-on-year -- a 931.8 percent increase -- amid recovering chip prices and growing demand.
This strike comes at a challenging time for Samsung Electronics. The company has faced major challenges in recent years, including a historic shortage of computer chips during the COVID-19 pandemic, weak earnings, and a decline in consumer demand last year due to global economic uncertainty.
Despite these challenges, Samsung remains optimistic about future demand, especially with the rise of AI and high-end chips. The company reported a more than ten-fold increase in first-quarter operating profit, driven by forecasts of high demand for AI-powered and high-end chips.
Union membership at Samsung has surged since 2020, following the company's pledge to end its long-standing practices of discouraging organized labor.
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