Samsung Electronics’ largest union went on a strike in South Korea on June 7 amid a standoff over pay, Bloomberg reported. This is the first time in 55 years that the National Samsung Electronics Union, the largest of the tech giant’s several unions, has encouraged around 28,400 of its workers to take a day off as they demand better pay.
“This is a soft start and a symbolic move,” Lee Hyun-kuk, deputy secretary general of the union told Bloomberg News. He, however, said the union plans to organise subsequent strikes if the management refuses to communicate. “We are not ruling out an all-out general strike,” he added.
The workers union’s strike comes on Friday, which falls between a Thursday public holiday and the weekend. They plan to resume normal work hours next week. Also, the union did not disclose how many members participated in the strike-through annual leave.
According to reports, the South Korean tech giant is at odds with some of its employees as it is trying to reassure investors that its memory chip business can meet demand.
In videos floating on social media, union leaders were seen holding banners and placards in front of Samsung’s office building in Seoul. Bloomberg reported that there was also a bus draped in an enormous white protest banner that was parked at the site. The crowd, however, was largely muted.
Also Read: Samsung faces probe after two chip workers exposed to radiation In a statement, Samsung Electronics said, “The company has been and will continue to be in good faith in negotiations with the union.” The firm added that there has been no impact on production or management activities and that the number of workers off on Friday is less than the comparable day last year.
Analysts cited by Reuters say the walkout is unlikely to immediately impact semiconductor production or shipments but will add pressure on Samsung Electronics as it chases AI and narrows a gap in contract chip manufacturing with Taiwan's TSMC.
According to the Bloomberg report, the strike comes against the backdrop of a dispute over bonus payments for Samsung labourers. Workers in the company’s semiconductor division didn’t receive such extra payments last year when the unit lost about 15 trillion won.
Also Read: Samsung replaces chip chief after SK Hynix takes AI lead Union leader Son Woo-mok told the news agency that the union fears the workers may not get bonuses this year as well even if the division returns to profit
As per the report, bonuses at Samsung are calculated using a complex formula that deducts its cost of capital from operating profit, adjusted for taxes on a cash basis. The striking workers want the company to simply use operating profit like several of its peers or make the calculating process more transparent.
Also Read: Samsung's profit surges after AI boom reverses chip losses