Samsung's roughly 28,000-member labor union plans first-ever strike on June 7, 2024 after wage negotiations stall
The labor union of South Korean semiconductor manufacturer Samsung has announced that it will go on strike on June 7, 2024, citing 'the breakdown in labor-management negotiations with management.' This is the first time that the labor union at Samsung has gone on strike since the company was founded in 1969.
Samsung Labor Union Plans First-Ever Strike as Wage Talks Break Down - Bloomberg
Samsung Electronics' union threatens first ever walkout next week | Reuters
Samsung's largest union calls its first-ever strike
https://www.engadget.com/samsungs-largest-union-calls-its-first-ever-strike-123035998.html
The strike was announced by the National Samsung Union (NSEU), one of Samsung's labor unions. NSEU has about 28,000 members, making it Samsung's largest labor union, accounting for more than one-fifth of the company's total employees.
NSEU has been in labor-management negotiations with management regarding wage increases since January 2024. NSEU initially rejected the company's proposal for a 5.1% wage increase, and instead demanded a 6.5% increase and an increase in annual paid leave. Since then, negotiations have continued over the payment method of performance-based pay rather than the rate of wage increases.
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A union representative said: 'We are not asking for a 1-2% wage increase. We want to be paid a fair wage for the amount of work we do. We want fair and transparent compensation for our work.'
However, on 29 May 2024, NSEU reported that negotiations with management had reached an impasse. As its first collective action, NSEU has instructed its 28,000 members to collectively take paid annual leave and go on strike on 7 June 2024.
This is the first time that Samsung workers have gone on strike since the company was founded in 1969, and if the situation continues for a long time, it is expected that production will be disrupted. Regarding the strike, the leader of the NSEU predicted that 'the impact of this strike on the production line for chips and other electronic devices will be minor, as much of the work is automated and there are many other employees besides us.'
Nevertheless, the foreign media outlet Bloomberg speculates that the reason why NSEU is going on strike is that 'they want top management, including Chairman Lee Jae-yong, to take the opinions of workers more seriously.' It has been pointed out that even though Chairman Lee Jae-yong
'Samsung has maintained for the past 10 years that it has faced a crisis, including competition from other companies, but this should not be used as an excuse for not meeting our demands,' NSEU Chairman Song Woo-mok said.
In response to the NSEU's strike plan, Samsung said, 'We are committed to continuing to negotiate in good faith with the union and are making every sincere effort to reach an agreement.' After the NSEU announced its strike plan, Samsung's stock price on May 29, 2024 fell 3.09% from the previous business day to 75,200 won (about 8,600 yen).
Samsung is currently undergoing an on-site investigation by South Korean government authorities after two employees were exposed to X-rays during a semiconductor manufacturing process on May 27, 2024.
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Samsung's 28,000-member labor union launches first strike in company history, demanding higher wages and improved working conditions - GIGAZINE
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