Workers at Samsung Electronics Co. are anticipated to begin the largest organized labor action in the company's 50-year history on Monday by walking off assembly lines.
After talks over salary and vacation time broke down last month, the largest union at the biggest company in the country has been busy planning for the three-day walkout. The one-day strike began in early June. The first in Samsung's 55-year history, has escalated to the planned action.
Purpose of strike
Union leaders claim that the purpose of the production disruption at one of the company's most sophisticated chip facilities is to send a message.
According to reports, the union's deputy secretary-general said on Friday that the labor union hopes to mobilize up to 5,000 people for rallies outside Samsung's semiconductor plants in Hwaseong, which is located south of Seoul.
The number of workers who will actually quit their jobs is unknown. However, there's a chance that Samsung's unprecedented move could harm the most well-known and wealthy company in the nation and lead to similar reactions throughout the tech sector.
Dispute between workers and company
For the more than 28,000 union members, increased pay and more paid time off are currently at the center of the conflict. Union leaders originally stated they wanted a larger pay increase for about 855 employees who refused to accept a 3 per cent yearly basic pay hike. However, last week, they modified their demands to include the entire cohort.
Bonuses linked to Samsung's excess profit, which chip workers did not receive last year when their unit lost roughly 15 trillion won, are among the other issues. Union leaders say they fear they might be left out again this year, even if the division turns a profit again.
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Aiming to stave off an Apple Inc. challenge to its dominant position in the global market, Samsung is getting ready to unveil new foldable phones and watches this week in Paris ahead of the Olympics. They are also planning to unveil a smart ring.
Samsung, however, stands to benefit from an expected recovery in global memory and electronics demand from historically low levels following the COVID pandemic. The company reported a 15-fold increase in earnings on Friday, albeit from a very low base in 2023.
