Samsung union launches 3-day strike demanding better bonus pay
The National Samsung Electronics Union (NSEU) in South Korea has initiated a three-day strike on Monday. The union, comprising over a fifth of Samsung's workforce in South Korea with approximately 28,000 members, is demanding improvements to the company's performance-based bonus system and an additional day of annual leave. According to a union poll conducted on Monday morning, around 8,100 members were ready to participate in the strike.
Further strikes possible if demands unmet
Senior union leader Lee Hyun-kuk announced in a YouTube broadcast last week that more strikes could follow the initial three-day stoppage if the workers' demands are not addressed. The exact number of participants in the strike remains uncertain. Alongside the strike, a rally has been planned near Samsung's headquarters in Hwaseong, south of Seoul.
Strike unlikely to impact chip production
Despite the ongoing strike, analysts suggest that Samsung's chip production is unlikely to be significantly affected. This is due to the fact that most processes at Samsung, the world's largest memory chipmaker, are automated. The union had previously staged a walkout using annual leave last month, which reportedly had no impact on Samsung's production or business activity.
Strike signifies decreased staff loyalty
Analysts note that the strike, while potentially having minimal impact on output, signifies a decrease in staff loyalty at Samsung. This comes at a challenging time for the company as it navigates intense competition in chips used for artificial intelligence applications. Despite a more than 15-fold increase in its second-quarter operating profit due to rebounding semiconductor prices driven by an AI boom, Samsung's share price performance has been trailing behind South Korean chip rival SK Hynix.
