Samsung Workers Go on Indefinite Strike Over Pay and Benefits
A union representing nearly a quarter of Samsung Electronics’ workers in South Korea has called on its members to go on strike indefinitely, as part of its campaign for better pay and benefits. The National Samsung Electronics Union (NSEU) made the announcement on the last day of a three-day general strike, after management showed no intention of holding talks over its demands.
Disruption to Production
The union said its actions had disrupted production, but Samsung has disputed this claim. “Samsung Electronics will ensure no disruptions occur in the production lines. The company remains committed to engaging in good faith negotiations with the union,” the firm told BBC News. However, the union said: “The company has no intention to engage in a dialogue even after the first general strike, thus we declare a second general strike starting from July 10th, lasting indefinitely.”
Samsung factory
Impact on the Company
Samsung Electronics is the world’s largest maker of memory chips, smartphones, and televisions. It is the flagship unit of South Korean conglomerate Samsung Group, which is also the biggest of the family-controlled businesses that dominate Asia’s fourth-largest economy. The firm’s shares were trading around 0.5% lower on the Korea Stock Exchange after the NSEU announcement.
Samsung logo
Background
Samsung Group was known for not allowing unions to represent its workers until 2020, when the company came under intense public scrutiny after its chairman was prosecuted for market manipulation and bribery. The NSEU was formed in response to this, and has been pushing for better pay and benefits for its members ever since.
Samsung workers protesting
Financial Impact
Last week, Samsung Electronics said it expects its profits for the three months to June 2024 to jump 15-fold compared to the same period last year. This is due to a boom in artificial intelligence (AI) technology, which has lifted the prices of advanced chips. However, the company’s financial success has not translated to better pay and benefits for its workers, which is why the NSEU is taking action.
AI technology
Conclusion
The indefinite strike by Samsung workers is a significant development in the company’s history. It highlights the ongoing struggle for better pay and benefits, and the need for the company to engage in good faith negotiations with its workers. As the situation continues to unfold, it remains to be seen how Samsung will respond to the union’s demands.
