In an unprecedented move, the union representing thousands of Samsung Electronics workers has announced the first strike at the South Korean technology giant since its founding over fifty years ago. This historic decision marks a significant shift in the company’s labor relations landscape.
One-day protest planned
The National Samsung Electronics Union revealed plans for a one-day protest on June 7, urging all its members to use their paid leave on that day. The union, which represents approximately 28,000 workers—over 20% of Samsung Electronics’ workforce—has not ruled out the possibility of a full-scale strike in the future.
Despite the planned protest, Samsung Electronics has stated its commitment to ongoing negotiations with the union. Talks have been underway since the beginning of the year, focusing on wage disputes, but have yet to reach a resolution. The union is demanding a 6.5% pay increase and a bonus tied to the company’s earnings.
“We can’t stand persecution against labor unions anymore. We are declaring a strike in the face of the company’s neglect of laborers,” a union representative declared during a live-streamed news conference, highlighting the deep-seated frustrations among the workforce.
Potential impact on global supply chains
Samsung Electronics, the world’s leading producer of memory chips, smartphones, and televisions, faces significant risks if a full-scale strike occurs. Analysts have warned that such a move could disrupt the company’s computer chip manufacturing and ripple through global electronics supply chains. The strike comes in the wake of Samsung Group’s recent history with labor unions. Historically, the conglomerate, which is South Korea’s largest family-controlled business, did not permit union representation until 2020. This change followed intense public scrutiny and legal issues, including the prosecution of its chairman for market manipulation and bribery.
Market reaction
Following the union’s announcement, Samsung Electronics’ shares fell by about 2% in Seoul, reflecting investor concerns over the potential disruptions and the broader implications for the company’s operations.
As the situation unfolds, the global tech industry watches closely, aware that the outcome of this labor dispute could set a precedent for workers’ rights and corporate governance in South Korea and beyond.