Samsung Electronics, the world’s largest producer of memory chips and smartphones, is set to face a significant labor challenge this month.
The National Samsung Electronics Union, representing tens of thousands of workers, has announced plans for a three-day strike starting July 8th, following failed negotiations with management.
Lee Hyun-kuk, vice-president of the National Samsung Electronics Union, stated, “Starting from Jul 8, we will stage a three-day general strike.” This decision comes after months of unsuccessful negotiations between the union and Samsung’s management, which began in January.
Workers’ Demands and Management’s Offer
The union has rejected management’s offer of a 5.1% pay hike. Workers are demanding improvements to annual leave policies and transparent performance-based bonuses.
Also Read: Samsung announces July 10th Galaxy Unpacked event to unveil new devices
The union’s statement criticizes management, saying, “Management created this state” by failing to offer significant concessions.
In a rallying cry to workers, the union declared, “What will change if we do not act. Will you just watch and do nothing? Will you be a hidden slave or an active owner? Nothing will change if we do not act. All employees need to participate in the strike. Let’s step up and change it!”
Historical Context and Impact
This planned strike marks a significant turning point for Samsung Electronics, which has a long history of non-union management. The company managed to avoid unionization for almost 50 years, with the first labor union forming only in the late 2010s.
An unnamed Seoul-based analyst commented, “This planned strike marks a turning point in Samsung’s history of non-union management. This could be seen as a drop in employee loyalty at Samsung … caused by wages and disappointing compensation compared to Samsung’s rivals.”
The timing of the strike coincides with Samsung’s planned launch of its next line of foldable devices on July 10th. It remains to be seen whether the industrial action will impact this important product release.
Last month, Samsung experienced its first collective action when workers took mass annual leave on the same day. At that time, Samsung reported no impact on production or business activity, as the striking workers were primarily from inner-city offices rather than manufacturing sites.
As this labor dispute unfolds, it will undoubtedly draw attention to Samsung’s labor practices and potentially influence the company’s operations and public image in the coming weeks.
