“Samsung Electronics workers continue indefinite strike, claiming disruption in chip production”
Samsung Electronics’ largest union has intensified its conflict with management following unsuccessful negotiations over pay and working conditions. On Wednesday, unionized workers announced an indefinite strike, heightening a rare labor dispute that could potentially disrupt Samsung’s globally leading chip production.
Around 6,500 workers began a planned three-day strike on Monday, protesting pay and working conditions. The Nationwide Samsung Electronics Union decided to extend the strike due to a lack of response from the company, according to Lee Hyun Kuk, the union’s vice president. The union represents 28,000 workers, approximately 20% of Samsung’s global workforce.
Samsung, South Korea’s largest private employer, is the world’s top producer of memory chips, essential for data storage in computers and other electronic devices. The company is also a leading manufacturer of logic chips, second only to Taiwan Semiconductor Manufacturing Company. The union has been negotiating with Samsung since January, focusing on issues such as vacation days and wages.
The union declared that the strike aims to pressure management into negotiations. “As the strike goes on, the management’s blood will dry out and they will eventually come to the negotiating table on their knees,” stated the union.
While the union claims the strike has slowed some operations and production, a Samsung representative asserted that production remains unaffected and the company is committed to preventing future disruptions. Samsung emphasized its dedication to good faith negotiations with the union.
Avril Wu, a senior research vice president at TrendForce, noted that due to the high level of automation in Samsung’s factories and the minimal need for manual labor, the strike’s impact is expected to be limited. According to Wu, market participants in the memory sector are not significantly concerned about the strike at this time.
In June, Samsung workers staged a one-day strike, the first in the company’s history. Union demands include a 3.5 percent wage increase, better bonus policies, an additional vacation day, and compensation for lost wages during the strike. “We won’t go back until all of the demands are met,” said Lee.
Recently, Samsung announced an unexpectedly high operating profit of $7.5 billion for the second quarter, amid surging demand for chips used in AI applications. The company’s stock has reached multiyear highs. Despite its historical resistance to organized labor, unions have gained a foothold at Samsung only in recent years.
Labor strikes are common in South Korea. Earlier this year, over 10,000 doctors protested government plans to increase medical student admissions, and thousands of construction workers have rallied against labor policies.