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Samsung Electronics’ South Korea’s largest labor union said Wednesday it will continue its strike indefinitely as it pressures the tech giant to raise wages and benefits for its workers.
The National Samsung Electronics Union (NSEU) has about 30,000 members who make up about a quarter of Samsung’s South Korean workforce. The union decided to extend its strike, which began on Monday, indefinitely because management had shown no indication of holding talks.
The union had originally planned the strike to last three days until Wednesday, and its extension raises new challenges for the company.
Samsung, the world’s largest maker of memory chips, has struggled to navigate growing competition for semiconductors used for exercise. artificial intelligence (AI) applications.
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Samsung has said it will ensure the strike does not affect its chip production lines. (Jung Yeon-Je/AFP via Getty Images / Getty Images)
Union officials said about 6,500 workers had taken part in the strike and called for more members to join. work stoppage.
“It’s time we need strength and help from our colleagues,” said Lee Hyun-kuk, the union’s vice president, in a YouTube live stream. “Actually our objective is to stop the (chip production) lines.
| TICKER | Safety | The last | AmENdmENT | change % |
|---|---|---|---|---|
| SSNLF | SAMSUNG ELECTRONICS CO LTD. | 40.5999 | -17.15 | -29.70% |
Samsung said the strike had not caused any disruption to its chip manufacturing processes during the first three days of the strike.
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The NSEU is demanding a 3.5% pay rise and a day off to mark the establishment of the union instead of an extra day of annual leave. (Jung Yeon-Je/AFP via Getty Images / Getty Images)
“Samsung Electronics will ensure that there are no disruptions to production lines. The company remains committed to engaging in good faith negotiations with the unions,” Samsung told FOX Business in a statement.
Analysts said it would be difficult to verify whether the strike has disrupted Samsung’s chip production unless the union releases details on which wafers and processes were affected by its labor action.
The union said it plans to run ad campaigns in cafeterias at Samsung’s chip factories, responsible for producing 8-inch wafers and high bandwidth. memory chips that are in high demand for use in AI processors.
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Analysts are unsure whether the strike will affect Samsung’s production of memory chips used in electronic devices and to train AI models. (Jung Yeon-Je/AFP via Getty Images / Getty Images)
Union officials disputed media reports of low turnout in the strike and told Reuters the five-year-old task force did not have enough time to educate its members about labor issues and held training sessions on Tuesday and Wednesday.
They added that a former union leader at Hyundai Motor, which has about 60% of its workers South Korea unionized, was sharing the history and experience of strikes at auto manufacturers. Hyundai and its union in South Korea reached a tentative wage deal this week that could avert a strike.
The NSEU said it revised the demands to include a 3.5% increase in basic pay and a day off to mark the establishment of the union instead of an extra day of annual leave. Lee said Samsung management previously offered a 3% increase in base pay, but the union wants a higher amount to better reflect the impact of inflation.
Members of the Samsung Electronics National Union hold a rally as they begin a three-day general strike outside the company’s foundry and semiconductor plant in Hwaseong on July 8, 2024. (Jung Yeon-Je/AFP via Getty Images / Getty Images)
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Lee Kungmook, a business professor at Seoul National University, told Reuters that the union strike may not gain widespread support among workers because disruptions to Samsung production would directly affect their wages.
“If their company can’t make money because the production lines don’t work, the bonus amount will drop significantly. Then the strike won’t be able to gain momentum,” Lee said.
Reuters contributed to this report.