World
Samsung Electronics Faces Indefinite Strike Over Pay and Working Conditions
Samsung Electronics is on the brink of an indefinite strike as workers demand better pay and improved working conditions. Stay tuned for updates on this developing situation.
Background
Unionized workers at Samsung Electronics have announced an indefinite strike, intensifying a rare labor dispute that could impact the technology giant’s chip business. The strike, initially planned for three days, saw approximately 6,500 workers walk off the job on Monday over concerns regarding pay and working conditions.
Union’s Decision
The Nationwide Samsung Electronics Union, representing 28,000 workers, decided to extend the strike after receiving no response from the company. Lee Hyun Kuk, the union’s vice president, stated that the lack of communication prompted the escalation.
Impact on Samsung
Samsung Electronics, South Korea’s largest private employer and a key player in memory and logic chip manufacturing, has been facing disruptions in its operations due to the ongoing strike. The union’s actions have resulted in some slowdowns in Samsung’s activities.
Negotiations and Demands
Negotiations between the union and Samsung have been ongoing since January, primarily focusing on vacation days and wages. The union is demanding a 3.5% wage increase, improved bonus policies, an additional vacation day, and compensation for any lost wages during the strike.
Company Response
While the strike has not halted production according to Samsung, the company has expressed its commitment to engaging in sincere negotiations with the union. Previously, in June, Samsung witnessed its first-ever one-day strike.
Industry and Economic Context
Despite the labor dispute, Samsung recently projected a significant increase in operating profit for the second quarter. The company’s stock value has been on the rise due to high demand for chips used in artificial intelligence applications.
Historical Context
Historically, Samsung has been known for its resistance to organized labor, with unions only emerging in recent years. Labor strikes are not uncommon in South Korea, with various sectors, including healthcare and construction, experiencing protests over labor-related issues in recent times.