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 Electronics 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.
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.
Samsung Group logo
Market Reaction
After the NSEU announcement, the company’s shares were trading around 0.5% lower on the Korea Stock Exchange. 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, driven by a boom in artificial intelligence (AI) technology.
Korea Stock Exchange
Conclusion
The indefinite strike by Samsung workers is a significant development in the company’s labor relations. As the company continues to grow and expand its operations, it is likely to face increasing pressure from its workers to improve pay and benefits. The outcome of this strike will be closely watched by investors and industry analysts, as it could have implications for the company’s production and profitability.
