Stay in the loop! Subscribe to our newsletter and gain access to exclusive insights, trends, and news from the world of business and leadership. Don’t miss out!
The National Samsung Electronics Union (NSEU), representing about 28,000 members or over a fifth of Samsung’s workforce, announced it will stage its first-ever walkout on June 7.
This historic move comes amidst escalating demands for higher wages and better working conditions. The union made this announcement during a live-streamed press conference, where officials held a banner reading: “We can no longer tolerate labor repression, union repression.”
Samsung Electronics recently decided to increase wages by 5.1% this year, but the union is demanding more, including an additional day of annual leave and more transparent performance-based bonuses.
The union accuses Samsung of failing to present a compromise plan during negotiations held the previous day.
Samsung responded, “We will sincerely engage in discussions with the union.”
Workers have been intermittently protesting outside the company’s offices in Seoul and its chip production site in Hwaseong. If the union members proceed with the one-day walkout, it will affect all Samsung sites across South Korea.
NSEU is the largest of five labor unions at Samsung Electronics. However, whether other smaller unions plan to join is unclear.
A coalition of five unions at Samsung affiliates, including another Samsung Electronics union, questioned the intention behind the strike plan, indicating they would not join the move.
The coalition suggested that the strike might be more about joining a combative umbrella union than improving workers’ conditions at Samsung.
The strike announcement comes at a challenging time for Samsung, which has been struggling in some areas, including cutting-edge semiconductor chips. Last week, Samsung replaced the head of its semiconductor unit, citing the need for new leadership to navigate a “crisis” in the chips industry.
Union membership has grown rapidly after Samsung pledged in 2020 to end practices discouraging organized labor. This rise in union membership reflects workers’ frustration with Samsung’s recent competitive slump and legal issues.
For instance, the company is currently dealing with a prosecution appeal related to a 2015 merger of Samsung companies, in which Chairman Jay Y. Lee was found not guilty of fraud and other charges.
Following the strike announcement, shares of Samsung Electronics closed down 3.1% on Wednesday, compared to the benchmark KOSPI’s 1.7% fall. This indicates market concern over the potential disruption from the union’s actions.
Volvo Cars has reduced its margin and revenue expectations for the second time this year. This
Safe Superintelligence (SSI), co-founded by former OpenAI chief scientist Ilya Sutskever, has successfully raised $1 billion
According to two sources familiar with the matter, Tesla plans to introduce a six-seat variant of
Cryptocurrency investors and industry executives plan to raise at least $100,000 for Vice President Kamala Harris
Warren Buffett’s conglomerate, Berkshire Hathaway, has reduced its stake in Bank of America (BofA) by selling
