Protesting Samsung workers. Credit: AFP
Workers at Samsung, the South Korean tech giant, began a three-day strike on Monday to demand better pay and benefits. This action, led by the National Samsung Electronics Union, could impact the production of memory chips, which are crucial to Samsung’s operations.
Thousands of employees, wearing rain jackets and ribbons that read “fight with solidarity,” gathered outside Samsung’s factory in Hwaseong, Gyeonggi, just south of Seoul. The union, which represents over 30,000 workers, has been in negotiations with Samsung management since January. The talks stalled over disagreements on benefits and a rejected 5.1% pay raise offer from the company.
“The strike has started today,” said Son Woo-mok, head of the union. He warned that this action might be just the beginning. “Please do not come to work until July 10th and do not receive any business calls,” Son told the crowd.
About 5,200 workers from various factory facilities, manufacturing, and development joined the protest. Lee Hyun-kuk, the union’s vice president, questioned whether Samsung realized the potential impact on their production lines.
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The union announced the strike last week, calling it a last resort after failed negotiations. This strike follows a one-day walkout in June, marking the first collective action at Samsung, a company that has historically avoided unionization.
“We are now at a critical crossroads,” the union stated, urging members to support the strike. “This strike is the last card we can use,” it added, emphasizing the need for solidarity among workers.
One union member expressed excitement about the strike, calling it a historic moment. Workers had previously rejected the company’s 5.1% pay hike in March and demanded improvements in annual leave and performance-based bonuses.
Samsung declined to comment on the strike.
Kim Dae-jong, a business professor at Sejong University, noted that while the strike is scheduled for three days, it includes workers from chip assembly lines. “The union could carry out additional strikes if the gridlock continues, posing a great risk to Samsung management,” he said.
Samsung Electronics avoided unionization for nearly 50 years, with company founder Lee Byung-chul firmly opposing unions. The first labor union at Samsung Electronics was formed in the late 2010s.
Samsung is the flagship subsidiary of Samsung Group, South Korea’s largest conglomerate. The company recently predicted a significant increase in second-quarter operating profits due to rising demand for generative AI.
Semiconductors, crucial to the global economy, are used in various products from kitchen appliances to weapons. Demand for advanced chips, especially those powering AI systems, has surged due to the success of products like ChatGPT. Semiconductors are South Korea’s leading export, accounting for a fifth of the country’s total exports.