The National Samsung Electronics Union (NSEU) in South Korea has escalated its labor action to an indefinite general strike starting July 10, 2024, following a three-day walkout that began on July 8. This marks a significant development in Samsung’s labor relations, as it represents the first full-scale strike in the company’s 55-year history.The union, which represents approximately 30,000 workers—nearly a quarter of Samsung’s South Korean workforce—is demanding better wages, benefits, and working conditions. Key demands include a wage increase ranging from 3.5% to 5.6%, an extra day off to mark the union’s founding, changes to the bonus pay system, and compensation for financial losses incurred during the strike.Samsung Electronics has stated that the strike will not affect production and that the company is committed to negotiating in good faith. However, the union claims that there have been clear disruptions in production, particularly in the semiconductor sector. Union vice president Lee Hyun-kuk reported that there have been no talks with management since the strike began.The strike’s impact on Samsung’s operations and global supply chains remains uncertain. While the company’s stock price initially showed only a slight dip of 0.5%, analysts are closely monitoring the situation given Samsung’s critical role in the global semiconductor industry.This labor action is particularly noteworthy given Samsung’s historical stance against unionization. The company’s founder, Lee Byung-chul, was known for his anti-union position, famously stating he would never allow unions until he had ‘dust in his eyes’. The current strike, therefore, represents a significant shift in the company’s labor dynamics.As the strike continues indefinitely, both sides appear to be at an impasse. The union has expressed confidence that the strike will ultimately lead to a victory, while Samsung maintains its commitment to ensuring uninterrupted production. The outcome of this labor dispute could have far-reaching implications for Samsung’s operations and labor relations in South Korea’s tech industry.
Key points
- The National Samsung Electronics Union (NSEU) has declared an indefinite strike starting July 10, 2024, following a three-day walkout.
- The union, representing about 30,000 workers, is demanding better wages, benefits, and working conditions.
- Samsung claims the strike has not affected production, while the union reports disruptions, particularly in chip manufacturing.
- This is the first full-scale strike in Samsung’s 55-year history, marking a significant shift in the company’s labor relations.
Contradictions👾Samsung claims the strike has not affected production, while the union reports clear disruptions, particularly in the semiconductor sector.
👾There are varying reports on the number of workers participating in the strike, with estimates ranging from 3,000 to 6,540.
