On Monday, workers at Samsung in South Korea kicked off a three-day strike over pay and benefits, a move that could impact the production of memory chips. The strike, led by a union representing thousands of employees, marks a significant moment for the tech giant known for its dominant position in the global chip market.
Dressed in rain jackets and sporting ribbons that read “fight with solidarity,” thousands of workers gathered outside Samsung’s factory in Hwaseong, an hour south of Seoul. Negotiations between Samsung management and the union have been ongoing since January but failed to resolve differences over benefits and a proposed 5.1 percent pay raise, which the union rejected.
“The strike has started from today,” said Son Woo-mok, head of the National Samsung Electronics Union. He warned that this action is just the beginning, urging workers to stay away from work until July 10 and avoid business calls.
The union, with over 30,000 members representing more than a fifth of Samsung’s workforce, declared the strike last week after talks collapsed. This follows a one-day walkout in June, the first collective action at Samsung, which had long resisted unionisation.
Union vice president Lee Hyun-kuk questioned whether management understood the potential impact on production lines, with about 5,200 factory, manufacturing, and development employees joining the protest.
Business professor Kim Dae-jong from Sejong University highlighted the risks, noting that continued strikes could pose significant challenges for Samsung amidst fierce competition in the chip market.
Samsung Electronics avoided unions for nearly 50 years, a stance firmly held by its founder Lee Byung-chul. The first union at Samsung Electronics was only established in the late 2010s. Today, Samsung is a crucial player in the semiconductor industry, which is vital for the global economy and a major export for South Korea.
The strike occurs as Samsung forecasts a substantial increase in second-quarter operating profits due to rising demand for AI-related chips. Semiconductors are essential in various industries, from consumer electronics to automotive and defense, with South Korea’s semiconductor exports reaching their highest level in nearly two years in March.
