A workers’ union at Samsung Electronics in South Korea has announced plans for a strike scheduled from July 8 to July 10, according to a union official on Tuesday. The union is currently assessing the level of participation among its members, as reported to Reuters.
Son Woo-mok, the union leader, emphasized on Monday night that the primary demands include a more transparent system for bonuses and time off, along with a desire for Samsung to treat the union as an equal partner. Samsung, in response to queries about the strike, declined to provide any comment.
Despite the strike announcement, Samsung’s share price showed resilience, rising by 0.1% in morning trade, contrasting with a 0.7% decline in the benchmark index (.KS11).
Following Samsung’s commitment in 2020 to cease activities that discourage organized labor, union membership has grown substantially.
Analysts noted that while the strike may not significantly impact chip output due to the extensive automation at the world’s largest memory chipmaker, the extent of any impact will hinge on the participation levels and duration of workers directly involved in chip plant operations, according to insights from senior researcher Kim Yang-Paeng at the Korea Institute for Industrial Economics and Trade.
“Chip production cannot proceed with replacement workers” if people who operate the automated machines walked out for a long time “because of the specificity and expertise of the work,” Kim said.
Last month, workers en masse took annual leave on the same day in what was effectively the union’s first industrial action. At the time, Samsung said there was no impact on production or business activity. Those striking were mainly employed at inner-city offices rather than at manufacturing sites, analysts said.
“This planned strike marks a turning point in Samsung’s history of non-union management. This could be seen as a drop in employee loyalty at Samsung … caused by wages and disappointing compensation compared to Samsung’s rivals,” a Seoul-based analyst said on Tuesday, declining to be identified as details of the strike were unknown.
