Samsung Workers Initiate Indefinite Strike Over Pay and Leave Policies
Samsung Electronics’ largest labor union in South Korea has initiated an indefinite strike, following a three-day walkout that failed to resolve ongoing disputes over pay and bonuses.
The National Samsung Electronics Union (NSEU), representing 31,000 members or nearly a quarter of Samsung’s workforce in the country, announced the strike on Wednesday. This labor action, set to begin on July 10, marks the largest strike in the 55-year history of the smartphone and chipmaking giant.
Earlier this week, approximately 6,000 workers, primarily from Samsung’s semiconductor division, participated in a strike. Despite these efforts, no progress was made in negotiations with the company.
In a statement on its official website, the union expressed disappointment over Samsung’s refusal to negotiate, predicting that the longer the strike lasts, the more likely it is that management will engage in dialogue. The NSEU remains confident in achieving their goals.
Samsung Electronics responded by stating that the company is committed to good faith negotiations with the union and will ensure production lines remain unaffected. However, union leader Son Woomok warned that restoring facilities shut down due to the strike could take a considerable amount of time.
The dispute escalated in June when the union staged a one-day strike after failed talks regarding transparent pay structures and improved working conditions. The union’s demands come after a tumultuous few years for Samsung, marked by a historic shortage of computer chips during the COVID-19 pandemic and declining demand for electronics due to global economic uncertainties.
Despite these challenges, Samsung is optimistic about a resurgence in demand for mobile devices, particularly with the rollout of new AI-powered products. The company recently projected a more than 15-fold increase in second-quarter operating profit compared to the previous year.
Union leader Son Woomok emphasized that workers want this optimism reflected in their pay. He noted that despite high operating profits, employees feel undervalued and dissatisfied with the lack of performance bonus increases, citing a decade-long narrative of crisis from the company.
“The company is not treating the employees properly,” said Woomok. “Even though the operating profit is high, the company has been saying it’s in a crisis situation for over 10 years, and employees are increasingly dissatisfied with the lack of performance bonus increases.”