A workers’ union at Samsung Electronics in South Korea has announced plans for a strike from July 8 to July 10, escalating industrial action against the country’s largest and most valuable company. The union aims to address issues such as a more transparent system for bonuses and time off, as well as seeking equal partnership treatment from the company.
The union, led by Son Woo-mok, is currently gauging the participation levels of workers in the upcoming strike. Samsung, in response to inquiries about the strike, has refrained from commenting on the union’s planned industrial action.
Despite the strike announcement, Samsung’s share price showed resilience, rising by 0.1% in morning trade, contrasting with a broader 0.7% decline in the benchmark price index (.KS11).
Analysts suggest that while the strike may not significantly impact chip output due to the automation of production at Samsung’s facilities, any disruption could potentially affect operations if workers responsible for operating specialized equipment participate extensively and for a prolonged period.
Last month, Samsung faced a mass annual leave day organized by the union, which did not impact production significantly but highlighted growing discontent among employees, particularly concerning compensation and benefits compared to industry peers.
“This strike represents a significant shift in Samsung’s labor relations landscape, potentially indicating a decline in employee loyalty due to wage disparities and perceived shortcomings in compensation,” noted a Seoul-based analyst on condition of anonymity due to the evolving nature of the strike details.
