A major union representing tens of thousands of Samsung Electronics employees will strike for the first time ever. Announced today, that is, 29 May, the strike poses a potential threat to key global semiconductor supply chains.
Samsung Electronics is the flagship subsidiary of the Samsung Group, the largest of South Korea’s family-controlled conglomerates.
It is reported that about 20 per cent of the company’s workforce will use their annual leave to strike for one day on 7 June, with the possibility of a general strike in the future.
The company, reportedly, has been in wage negotiations with the union since January. However, despite ongoing talks, no agreement has been reached. Consequently, the union declared a strike in response to the company’s neglect of labourers. Representing over 28,000 employees, the union emphasised its efforts to resolve the issue through dialogue. Son Woo-mok, president if the union, noted that while the union had accepted the company’s proposed pay raise, it was also seeking an additional holiday and a transparent system to measure performance bonuses based on sales profit.
The company has announced that it will continue to engage in dialogue with the labour union.
Semiconductors are crucial to the global economy, integral to products ranging from kitchen appliances and mobile phones to cars and weapons. The demand for advanced chips powering AI systems has surged with the success of generative AI products such as ChatGPT. In March, South Korea’s semiconductor exports reached $11.7 billion, their highest level in almost two years, accounting for one-fifth of the country’s total exports, according to the trade ministry.
