A union representing tens of thousands of Samsung Electronics workers in South Korea announced on Wednesday that it would prolong its three-day strike indefinitely to compel management to negotiate, demanding improved annual leave and transparent performance-based bonuses.
This strike is the largest labor action in the tech giant’s history, increasing pressure on the company’s management, who recently forecasted a significant rise in second-quarter operating profits.
The National Samsung Electronics Union declared, “(We) declare a second indefinite general strike from July 10, after learning that the management has no willingness to talk.”
More than 5,000 members initiated a strike on Monday, initially planned for three days, as part of an ongoing dispute over pay and benefits.
The decision follows a one-day strike in June, marking the first collective action at the company, which had avoided unionization for decades.
With over 30,000 members, the union represents more than a fifth of Samsung’s workforce.
Samsung assured AFP on Wednesday that production would remain unaffected by the strike.
“Samsung Electronics will ensure no disruptions occur in the production lines,” a spokesperson told AFP. “The company remains committed to engaging in good faith negotiations with the union.”
However, the union reported “clear disruption in production” and asserted that extended strike action would increase pressure on management.
“Eventually, they will kneel and come to the negotiation table. We are confident of victory,” the union stated.
The union accused Samsung management of “obstructing” the strike, citing a lack of willingness to engage in dialogue, and called for more workers to join the strike.
“Your determination is needed to advance our goals and victory. Let us unite our strength to protect our rights and create a better future.”
Negotiations between the union and management have been ongoing since January, but the parties have not reached an agreement.
Workers have rejected a 5.1 percent pay increase, demanding improved annual leave and transparent performance-based bonuses.
The strike’s impact “depends on various factors, (such as) duration of the strike, accordingly lost days of production and recoup strategy,” Neil Shah, research vice president at Counterpoint Research, told AFP.
He also noted the importance of how prepared Samsung’s management is to handle the situation and implement solutions quickly.
For almost 50 years, Samsung Electronics managed to prevent unionization, often using aggressive tactics, according to critics, while growing to become the world’s largest smartphone and semiconductor manufacturer.
Company founder Lee Byung-chul, who passed away in 1987, was strongly opposed to unions, famously stating he would never allow them “until I have dirt over my eyes.”
The first effective labour union at Samsung Electronics was established in 2019. Soon after, the founder’s grandson and current chairman, Lee Jae-yong, ended the company’s anti-union stance in 2020, acknowledging that Samsung’s labor policy “failed to meet the demands of changing times.”
Samsung Electronics is the flagship subsidiary of South Korea’s largest conglomerate, Samsung Group, and plays a significant role in the global output of high-end chips.
The company recently projected a more than 15-fold increase in second-quarter operating profits, driven by rising demand for generative AI.
