Business Report :
In a significant move, the workers’ union at Samsung Electronics has announced a strike from July 8-10, aiming to address concerns over bonus transparency and equal partnership with the company.
This decision marks a crucial step in the union’s ongoing efforts to assert its demands against South Korea’s most valuable company.
The National Samsung Electronics Union is currently assessing the number of workers who will participate in the strike.
The union’s leadership has emphasized the need for a fair and transparent system for bonuses and time off, urging Samsung to engage with the union as an equal partner.
Samsung has yet to comment on the strike plans. Despite the announcement, Samsung’s share price remained relatively stable, contrasting with a 0.8 per cent decline in the benchmark price index.
Union membership has surged since 2020, following Samsung’s commitment to stop discouraging the growth of organized labour. The union’s recent actions, including a coordinated annual leave day last month, have highlighted growing dissatisfaction among employees, particularly regarding wages and compensation compared to competitors.
Analysts suggest the strike may not significantly impact chip production due to the high level of automation in Samsung’s manufacturing processes. However, the extent of the impact will depend on the participation rate and duration of the strike by those operating the automated systems.
The specificity and expertise required for chip production make it challenging to replace striking workers.
The upcoming strike represents a pivotal moment in Samsung’s history, signalling a shift in employee relations and potentially reflecting a decline in worker loyalty.
As the strike date approaches, the union’s actions and Samsung’s response will be closely watched, with implications for the future of labour relations within the tech giant.