Unionized workers at Samsung Electronics have announced an indefinite strike, escalating a rare labor dispute that could potentially disrupt the technology giant’s world-leading chip business. The strike comes after an estimated 6,500 workers walked off the job on Monday for a planned three-day strike over pay and working conditions.
The Nationwide Samsung Electronics Union, representing 28,000 workers, or a fifth of Samsung’s global workforce, decided to extend the strike after receiving no response from the company. Lee Hyun Kuk, the vice president of the union, stated that negotiations had been ongoing since January regarding vacation days and wages.
The union’s demands include a wage increase of 3.5 percent, improved bonus policies, an extra day of vacation, and compensation for any lost wages during the strike. The union has emphasized that they will not return until all demands are met.
Last week, Samsung announced a larger-than-expected jump in operating profit for the second quarter, reaching $7.5 billion. Despite the strike, Samsung has stated that production has not been affected and remains committed to engaging in negotiations with the union.
Background and Context
Samsung Electronics, South Korea’s largest private employer, has been a key player in the memory and logic chip manufacturing industry. The company’s stock has been reaching multiyear highs due to the increased demand for chips used in A.I. applications.
Historically, Samsung has had little union presence, with organized labor only emerging in recent years. Labor strikes in South Korea are not uncommon, with various sectors, including healthcare and construction, experiencing strikes in protest of government policies.
