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Samsung Electronics Workers Go On Historic Strike
Samsung Electronics employees took the bold step of going on strike for the first time ever in the company’s history. This move comes as Samsung faces increased competition from other chipmakers, particularly with the growing demand for AI chips.
National Samsung Electronics Union Calls for Strike
The National Samsung Electronics Union (NSEU), the largest of the company’s unions, organized a one-day strike at Samsung’s Seoul office building. The strike was called as negotiations over pay bonuses and time off reached a standstill. Most of the striking workers come from Samsung’s chip division.
Uncertainty Surrounding Strike Participation
It remains unclear how many of the NSEU’s approximately 28,400 members participated in the strike. Several reports suggest that the strike is unlikely to impact chip production or lead to shortages. However, union leaders have indicated that further actions will be taken if management does not engage in negotiations.
Awkward Timing for Samsung
The timing of the strike is particularly awkward for Samsung, given tensions with the chipmaking segment of its business. Last year, the division reported a significant loss, leading to a 15-year low in operating profits. The current AI boom played a significant role in this loss, with Samsung losing its top spot to local rival SK Hynix.
Significance of the Strike
This strike holds significance not only due to the labor movement in South Korea but also because it involves Samsung, a company that accounts for roughly 20 percent of the country’s GDP. Additionally, Samsung has a history of illegal union busting, but in 2020, company leadership promised to end such practices. How Samsung handles this conflict will test its commitment to fair labor practices.
(To cite sources, please visit: The New York Times, Reuters, Bloomberg, Hani)
