Samsung Workers Launch Indefinite Strike for Better Pay, Leave Policies

Samsung Electronics’ largest labor union in South Korea has declared an indefinite strike following an unsuccessful three-day walkout over pay and bonuses. This action marks the most significant labor strike in the company’s 55-year history.

The National Samsung Electronics Union (NSEU), which represents around 31,000 members—nearly a quarter of Samsung’s total workforce in South Korea—announced the strike would commence on July 10. Earlier this week, 6,000 workers, primarily from the semiconductor division, participated in the initial strike.

In a statement on its official website, the union expressed that Samsung would “regret” its refusal to negotiate. The union is confident that a prolonged strike will compel the company to enter into discussions, stating they are “confident of victory.”

Samsung Electronics responded on Wednesday, affirming its commitment to good faith negotiations with the union and pledging to ensure that production lines remain unaffected by the strike.

However, union leader Son Woomok cautioned that facilities shut down due to the strike could take a long time to restore.

The labor dispute came to public attention in June when the union conducted a one-day strike after failed negotiations for a more transparent pay structure and improved working conditions.

Samsung Electronics, the world’s largest memory chipmaker, has faced significant challenges in recent years. The company experienced a historic chip shortage during the Covid pandemic, followed by decreased demand last year due to global economic uncertainties. Despite these challenges, the company is optimistic about a revival in demand, particularly with the rollout of new AI-powered smartphones. Samsung recently projected a more than 15-fold increase in its second-quarter operating profit compared to the same period last year.

The union insists that this optimism should be reflected in employee compensation. “The company is not treating the employees properly,” Woomok stated. He highlighted that despite high operating profits, Samsung has consistently claimed to be in a crisis for over a decade, leading to growing dissatisfaction among employees due to stagnant performance bonuses.