Samsung union sellers indefinite strike, vows manufacturing disruptions

A union representing tens of 1000’s of staff at Samsung Electronics in South Korea stated Wednesday it might lengthen a three-day strike indefinitely in a bid to pressure administration to barter.

The strike is the largest labour motion within the tech big’s historical past and steps up strain on the chipmaker’s administration, who final week predicted an enormous second-quarter working revenue enhance.

“(We) declare a second indefinite general strike from July 10, after learning that the management has no willingness to talk,” the National Samsung Electronics Union stated in a press release.

More than 5,000 members stopped working Monday for what was meant to be a three-day strike, a part of a long-running battle over pay and advantages.

The transfer follows a one-day walkout in June, the primary such collective motion on the firm, which went many years with out unionisation.

The union has greater than 30,000 members — greater than a fifth of the corporate’s whole workforce.

Samsung instructed AFP Wednesday that the strike wouldn’t have an effect on manufacturing.

“Samsung Electronics will ensure no disruptions occur in the production lines,” a spokesperson instructed AFP, including the corporate “remains committed to engaging in good faith negotiations with the union”.

But the union stated it had confirmed “clear disruption in production”, and added that the longer the strike went on “the more the management will suffer”.

“Eventually, they will kneel and come to the negotiation table. We are confident of victory,” it added in a press release, urging extra staff to take part.

– ‘No impact’ –

Samsung Electronics is the world’s largest reminiscence chipmaker and accounts for a major chunk of world output of the high-end chips utilized in generative AI.

But as semiconductor factories are extremely automated with low demand for precise manpower, it’s probably the strike is not going to have a serious influence, Avril Wu, an analyst at Taipei-based analysis group TrendForce, instructed AFP.

Related News

“Even if the strike is extended, the current assessment is that there will still be no significant impact,” Wu stated.

The union has been locked in negotiations with administration since January, however the two sides have did not slim variations.

The union’s calls for, newly launched on Wednesday, embrace a 5.6 % pay increase for all members, clear performance-based bonuses, compensation for monetary losses incurred because of the strike and a assured break day on the union’s founding day.

Whether the strike hits manufacturing “depends on various factors, (such as) duration of the strike, accordingly lost days of production and recoup strategy”, stated Neil Shah, analysis vice chairman at Counterpoint Research.

He added that it was additionally essential “how Samsung management has prepared knowing this could happen and already have simulated the solutions to solve this quickly”.

Samsung Electronics managed to keep away from having its staff unionise for nearly 50 years — generally adopting ferocious techniques, in line with critics — whereas rising to grow to be the world’s largest smartphone and semiconductor producer.

Company founder Lee Byung-chul, who died in 1987, was adamantly against unions, saying he would by no means permit them “until I have dirt over my eyes”.

The first efficient labour union at Samsung Electronics was fashioned in 2019.

Soon after, Lee Jae-yong, the founder’s grandson and present chairman of Samsung Electronics, declared an finish to the agency’s no-union precept in 2020.

Samsung’s labour coverage “failed to meet the demands of changing times”, Lee, then Samsung’s vice-chairman, stated.

The agency is the flagship subsidiary of South Korean big Samsung Group, by far the most important of the family-controlled conglomerates that dominate enterprise in Asia’s fourth-largest financial system.

Samsung lately predicted a greater than 15-fold enhance in its on-year second-quarter working income, due to rising demand for generative AI.




About Author

You may also like


Protesting Zamfara neighborhood barricades Govt House, faults troops withdrawal

There was tension in Gusau, the Zamfara State capital on Sunday, as residents of Bini village in the Maru Local

How to spice up your checking account, cellular pockets safety

Cybercriminals are constantly devising new ways to exploit vulnerabilities and steal sensitive information. DANIEL ADAJI outlines ways to safeguard your