The union representing thousands of workers at Samsung Electronics has called for the first strike in the South Korean technology giant’s 55-year history.
The National Samsung Electronics Union announced that it will stage a one-day protest on June 7 by urging all its members to use their paid leave. The union has not ruled out the possibility of a full-scale strike in the future.
The union claims a membership of around 28,000 workers, which constitutes over 20% of the company’s total workforce.
Samsung Electronics has responded by stating it will continue negotiations with the union.
“We can’t stand persecution against labour unions anymore. We are declaring a strike in the face of the company’s neglect of labourers,” a union representative said during a live-streamed news conference.
Discussions between Samsung Electronics’ management and the union have been ongoing since the beginning of this year, primarily focusing on wage increases. However, both parties have yet to reach an agreement.
The union’s demands include a 6.5% pay raise and a bonus linked to the company’s earnings.
Samsung Electronics is renowned globally as the leading producer of memory chips, smartphones, and televisions.
Analysts have warned that a full-scale strike could disrupt the company’s computer chip production and affect the global electronics supply chain news.
Samsung Electronics is the crown jewel of the South Korean conglomerate Samsung Group. It is the largest of the family-controlled businesses that dominate the economy of Asia’s fourth-largest country.
Historically, Samsung Group had a staunch anti-union stance, which changed in 2020 when the company faced intense public scrutiny after its chairman was prosecuted for market manipulation and bribery.
Following the strike announcement, shares of Samsung Electronics dropped approximately 2% in Seoul trading.
Additional reporting by Jake Kwon in Seoul.
