Samsung Electronics union begins three-day strike By Investing.com

Samsung Electronics union begins three-day strike By Investing.com
Samsung Electronics union begins three-day strike By Investing.com

South Korea’s National Samsung Electronics Union (KS:) (NSEU), which represents more than a fifth of Samsung Electronics’ workforce, has begun a three-day strike starting today. The NSEU is demanding improvements to the company’s performance-based bonus structure and an additional day of annual leave for workers. An estimated 8,100 union members have taken part in the strike this morning.

The union, which has about 28,000 members, has also hinted at the possibility of further strikes if its demands are not met. Lee Hyun-kuk, a senior union official, suggested in a broadcast last week that the current strike could be followed by further action. A rally is planned for this morning near Samsung’s headquarters in Hwaseong, south of Seoul.

Despite fears, analysts believe the strike is unlikely to significantly affect chip production as much of the manufacturing process at the world’s largest memory chipmaker is highly automated. This view is in line with the outcome of industrial action last month, in which annual leave was used for a strike that reportedly did not affect production or the company’s business activities.

The labor unrest at Samsung comes at a time when the company is facing intense competition in the semiconductor industry, especially in the area of ​​chips for artificial intelligence applications. Samsung recently projected a substantial rise in its second-quarter operating profit, which it attributed to a rally in semiconductor prices spurred by the AI ​​boom. However, the company’s stock performance has not kept pace with its local competitor, SK Hynix.

Reuters contributed to this article.

This article was translated with the help of artificial intelligence. For more information, please see our Terms of Use.

 
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