Samsung Electronics Faces Indefinite Strike as Union Demands Better Pay and Benefits
The National Samsung Electronics Union (NSEU) has called on its 30,000 members to go on strike indefinitely in a bid for improved pay and benefits. The announcement came at the end of a three-day general strike, with the union citing management’s lack of willingness to engage in talks over their demands.
The NSEU, representing a quarter of Samsung Electronics’ South Korean workforce, claims their actions have disrupted production, a claim disputed by Samsung. The tech giant stated they are committed to negotiations with the union and ensuring no disruptions in production.
Despite Samsung’s assurances, the union declared a second general strike starting from July 10th, urging more members to join the industrial action. Around 6,500 workers have participated in the strike so far, with a protest attended by 3,000 people on Monday.
Samsung Electronics, the world’s largest producer of memory chips, smartphones, and televisions, has faced its first walkout in its 55-year history. The company, part of the Samsung Group conglomerate, only allowed unions to represent workers in 2020 following public scrutiny.
Following the strike announcement, Samsung’s shares traded flat to slightly lower on the Korea Stock Exchange. The company recently forecasted a 15-fold increase in profits for the second quarter of 2024, driven by the booming demand for artificial intelligence technology and advanced chips.
The standoff between Samsung Electronics and its union highlights the ongoing labor issues in South Korea’s corporate landscape, with both sides digging in their heels as the strike continues.
