The National Samsung Electronics Union (NSEU), representing approximately 30,000 workers or nearly a quarter of Samsung Electronics’ South Korean workforce, is demanding improved compensation and benefits.
The union claims that management has shown reluctance to engage in negotiations, prompting this drastic measure. NSEU stated,
“The company has no intention to engage in a dialogue even after the first general strike, thus we declare a second general strike starting from July 10th, lasting indefinitely.”
The strike’s impact remains a point of contention. The NSEU reports that about 6,500 workers have participated in the strike thus far, with a recent protest drawing around 3,000 attendees. However, Samsung Electronics has refrained from commenting on specific participation numbers.
Union president Son Woo-mok challenged reports suggesting low participation in the strike. He emphasized that the relatively young union, established in 2019, had limited time to fully inform its members about the ongoing issues and their significance. Son said,
“Education about labour unions … has not been enough. But I don’t think this participation is low because our union is still young compared to other unions.”
No Production Disruption
While the union asserts that their actions have disrupted production, Samsung Electronics maintains a different stance. A company spokesperson told BBC News,
“Samsung Electronics will ensure no disruptions occur in the production lines. The company remains committed to engaging in good faith negotiations with the union.”
This labor unrest is particularly significant given Samsung’s historical stance on unionization. Jung In Yun from Fibonacci Asset Management Global noted, “In our view, there will be no production disruption.” However, the unprecedented nature of the situation leaves room for uncertainty.
It’s worth noting that “the union staged the first walkout at the company” just last month, marking a dramatic shift in labor relations at the tech giant.
Samsung Group, the parent conglomerate, had maintained a no-union policy until 2020, when it faced intense scrutiny following legal troubles involving its chairman. Lee Jae-yong, the then vice-chairman of the corporation promised to stop suppressing organized unions.
Substantial Increase in Profits
Despite the ongoing labor dispute, Samsung Electronics recently projected a substantial increase in profits. Largely due to the booming demand for advanced chips driven by the artificial intelligence (AI) sector, the company stated that it,
“Expects its profits for the three months to June 2024 to jump 15-fold compared to the same period last year.”
