Samsung strike highlights simmering discontent over wages and bonuses
The employees of the South Korean conglomerate Samsung Electronics Co. are demanding increases in wages and additional bonuses. On Monday, they began a three-day strike. Over 6,000 people participated in the picket line in front of the factory's main gate in Hwaseong, 45 km south of Seoul.
This is the second and largest protest action in the technology giant's 55-year history, highlighting the Yonhap agency. The first strike took place a month ago.
The strike participants who are members of the National Union of Samsung Electronics Workers (NSEU) make up about 24% of Samsung Electronics's 125,000 employees. According to the NSEU, despite the rain, 6,540 union members from six plants, including over 5,200 from the semiconductor and research and development sectors, took part in Monday's picket.
Strike? It's a "production disruption"
Organizers defined the strike's goal as "production disruption." The NSEU emphasized that it would be achieved because more people participated in the protest action on the first day than expected.
Since January, the NSEU has been negotiating with the company's management regarding wage increases, the vacation system, and profit-sharing bonuses.
According to Yonhap, the union demands a one-day vacation for all employees and a significant raise for 855 members who did not sign an agreement regarding wage negotiations for 2024. They also demanded that the company offer more paid leave and compensate employees for losses incurred during strikes.
"Now or never"
"We came out with the desperate assumption: now or never," said union chairman Son Wu Mok, adding, "We will continue to fight until the company changes."
If negotiations between the employees and management do not yield results, the union plans another five-day strike starting July 15.
Some analysts point out that the strike may not have a significant impact on the production of the world's largest semiconductor manufacturer due to the participation of a small percentage of employees and automated production. Nevertheless, it signals a decline in employee morale at a crucial moment in the chip industry as technology companies implement artificial intelligence.
Giant's problems
Samsung is struggling with poor performance and issues, especially in the semiconductor sector. Last year, due to declining demand for IT products, it recorded an annual loss of 15 trillion won ($11 billion).
Samsung Electronics has been preventing its employees from unionizing for decades until 2020.
