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Samsung workers begin 3-day general strike over pay
By Nidz Godino
“Strike has started from today,” Son Woo-mok, head of National Samsung Electronics Union said workers at South Korean tech giant Samsung began three-day general strike over pay and benefits, head of union representing tens of thousands of employees warned action could impact memory chip production.
Samsung Electronics is world’s largest memory chip maker and accounts for significant chunk of global output of high-end chips.
Wearing rain jackets and ribbons saying “fight with solidarity”, thousands of workers gathered outside company’s foundry and semiconductor factory in Hwaseong, Gyeonggi, an hour south of Seoul.
Samsung management has been locked in negotiations with union since January, with two sides failing to narrow differences on benefits and rejected 5.1 percent pay raise offer from firm.
“Today’s general strike is just the beginning,” he stressed.
“Recalling why we are here, please do not come to work until July 10th and do not receive any business calls,” he told crowd of workers.
Union said about 5,200 people from factory facility, manufacturing and development had joined protest.
“Do they still not think this will affect their production line?” said Lee Hyun-kuk, vice president of union.
Union , has more than 30,000 members, or more than fifth of company’s total workforce, announced three-day general strike last week, saying it was last resort after talks broke down.
Move follows one-day walkout in June, first such collective action at the company, went decades without unionization.
“We are now at critical crossroads,” union said in appeal sent out to members urging them to support strike.
“This strike is last card we can use,” it said, saying workers at company needed to “act as one”.
“I’m really excited,” one union member and protester said “we’re making history.”
Workers rejected offer of 5.1 percent pay hike in March, with union having previously outlined demands including improvements to annual leave and transparent performance-based bonuses.
Samsung declined request for comment.
“While ongoing strike is only scheduled for three days, participating members include those working in chip assembly lines, given that union could carry out additional strikes in case gridlock continues, it could pose great risk to Samsung management amid its race for dominance in competitive chips market, ” business professor Kim Dae-jong at Sejong University said.
Samsung Electronics avoided its employees unionizing for almost 50 years sometimes adopting ferocious tactics, according to critics while rising to become world’s largest smartphone and semiconductor manufacturer.
Company founder Lee Byung-chul, died in 1987, was adamantly opposed to unions, saying he would never allow them “until I have dirt over my eyes”.
First labor union at Samsung Electronics was formed in the late 2010s.
Firm is flagship subsidiary of South Korean giant Samsung Group, by far largest of family-controlled conglomerates that dominate business in Asia’s fourth-largest economy.
It recently predicted 15-fold increase in its on-year second quarter operating profits, thanks to growing demand for generative AI.
Semiconductors are lifeblood of global economy, used in everything from kitchen appliances and mobile phones to cars and weapons.
And demand for advanced chips that power artificial intelligence systems has skyrocketed thanks to success of ChatGPT and other generative AI products.
Semiconductors are South Korea’s leading export and hit $11.7 billion in March, their highest level in almost two years, accounting for fifth of South Korea’s total exports, according to figures released by trade ministry.
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