Workers at South Korean tech giant Samsung began a general strike on Monday, the head of a union representing tens of thousands of employees said, following wage negotiations broke down.
Son Woo-mok, head of the national union at Samsung Electronics, told Agence France-Presse (AFP), adding that a large rally was planned for later in the day.
The union, which has regarding 28,000 members, more than a fifth of the company’s total workforce, announced a three-day strike last week, saying it was a last resort following negotiations broke down.
The move comes following a one-day walkout in June, the first such action at the company that has been union-free for decades.
Management at the company, the world’s largest producer of memory chips, has been in wage negotiations with the union since January, but the two sides have failed to reach an agreement.
The union said in an appeal to workers last week, urging them to support a strike, “We are now at a crossroads. This strike is the last card we can use. The company’s employees should act in union.”
This strike is not only regarding improving working conditions, but also regarding recovering our rights which have been ignored until now.
A quote from Union Statement
Workers have rejected an offer of a 5.1% pay rise, while the union is also demanding improved annual leave and transparency on performance-based bonuses.
Samsung management, solicited by the AFP did not comment.
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A Samsung electronics manufacturing plant in Pyeongtaek, South Korea. (File photo)
Photo : Reuters
Kim Dae-jong, professor of business at Sejong University, told the AFP, “Although the current strike is only scheduled to last three days, participating workers include those working on chip manufacturing lines. Given that the union might extend the strike if the blockade continues, this might pose a significant risk to Samsung management in its race in the competitive chip market.”
Long opposition to unions
For nearly 50 years, the company has prevented its employees from unionizing, sometimes using violent methods, according to its detractors.
The company’s founder, Lee Byung-chul, who died in 1987, was adamantly opposed to unions, saying he would never allow them “until I have dust in my eyes.”
Samsung Electronics’ first union was formed in the late 2010s.
Samsung is one of the world’s largest smartphone manufacturers and one of the few producers of high-value memory cards used for artificial intelligence.
It is the flagship subsidiary of Samsung Group, the largest of the family-owned conglomerates that dominate Asia’s fourth-largest economy.
Samsung Electronics said last week it expects second-quarter operating profit to rise 15-fold from a year earlier on a rebound in chip prices and rising demand for its artificial intelligence products.
Semiconductors are at the heart of today’s global economy, used in everything from household appliances to cell phones to cars to weapons.
These chips are South Korea’s top export, earning the country $11.7 billion in March, the highest in nearly two years. That’s one-fifth of the country’s total exports.
Samsung Workers Strike Over Wages, Marking a Historic Shift in South Korean Tech Giant’s Labor Landscape
In a significant development, workers at Samsung Electronics, the world’s leading memory chip producer, commenced a three-day general strike on Monday, July 3, 2023. This action, a culmination of failed wage negotiations, marks a historic turning point for the tech giant known for its long-standing resistance to unionization. The union, representing around 28,000 employees, more than a fifth of the company’s workforce, cited the breakdown of negotiations as the catalyst for this strike, portraying it as a last resort to address their demands for better pay and working conditions.
A History of Union Resistance and a Growing Labor Movement
Samsung’s history is marred by its staunch opposition to unionization, dating back to its founding in the 1960s. Founder Lee Byung-chul was vehemently opposed to unions, famously declaring, “I will never allow them until I have dust in my eyes.” This resistance, at times characterized by violent suppression of union activities, has led to decades of simmering tension between management and workers. However, a shift in the labor landscape began in the late 2010s, with the formation of the first union at Samsung Electronics. This nascent union, despite facing challenges, has been instrumental in amplifying worker grievances and galvanizing a collective push for change.
Demand for Higher Wages & Better Work-Life Balance
The recent strike stems from the union’s rejection of Samsung’s proposed 5.1% pay raise, deemed insufficient by workers considering the company’s substantial profits. The union is also demanding improvements to annual leave policies and greater transparency regarding performance-based bonuses. This underscores the growing push for greater work-life balance and fairer compensation among Samsung workers. The strike highlights broader concerns regarding income inequality and the need for a more equitable allocation of profits generated by South Korea’s tech behemoths.
The Global Impact of the Strike
The strike extends beyond the immediate impact on Samsung’s operations. The industrial action underscores the changing dynamics within South Korea’s labor market and the growing influence of unions in traditionally non-unionized industries. The strike might serve as a catalyst for workers at other Korean conglomerates to seek similar improvements in their work conditions, potentially altering the landscape of labor relations in the country.
Samsung’s semiconductor manufacturing processes are essential to the global economy, with chips being indispensable for a wide range of applications, from household appliances to smartphones, cars, and even military equipment. This strike, with its potential to disrupt chip production, poses a significant risk to Samsung in a highly competitive market. The company’s ability to maintain its global leadership position under these circumstances will depend on its responsiveness to the union’s demands and its willingness to engage in constructive dialogue.
What’s Next for Samsung?
The outcome of the three-day strike and subsequent negotiations will have far-reaching consequences for Samsung. The company’s willingness to compromise on wages, benefits, and transparency is crucial to defusing the situation and averting potential long-term disruptions. If Samsung continues to resist the union’s demands, the strike might escalate, potentially leading to prolonged work stoppages and further damage to the company’s reputation.
While the strike provides a platform for workers to voice their concerns, it also presents an opportunity for Samsung to demonstrate its commitment to fair labor practices and a more equitable workplace. By engaging in meaningful negotiations and addressing the concerns of its workforce, Samsung can solidify its position as a responsible corporate entity within South Korea’s dynamic business landscape. This strike, and its followingmath, will be closely watched not only in South Korea but also globally, serving as a bellwether of how large corporations grapple with the changing demands of their workforce in the 21st century.
world's largest memory chip producer, is facing a historic general strike by its workers. The union, representing 28,000 employees, seeks higher wages, better leave policies, and transparency on bonuses. This marks a turning point in Samsung's long history of resisting unionization. The strike might potentially disrupt global supply chains and shape the future of labor relations in South Korea's tech industry.">