A union of Samsung employees has threatened to go on strike over a wage dispute. The group alleges that the Korean tech behemoth cut them out of wage negotiations. It announced the latest salary hike without their consent, offering a lower average increase in wages than what they demanded.
Samsung has had a terrible past few months. Its profits have declined sharply due to the sluggish economic environment and weak demand for semiconductors. The company reported its lowest quarterly profit in several years in Q1 2023. In light of this dip in earnings, it decided to offer lower salary hikes to its employees this year.
The South Korean media reported last month that Samsung will offer its employees an average salary hike of about four percent in 2023. That’s less than half of the nine percent average hike offered last year. Unsurprisingly, workers aren’t happy about it. The National Samsung Electronics Union (NSEU), which represents around 10,000 Samsung employees (roughly nine percent of the company’s total workforce in South Korea), has threatened to go on strike over the matter.
Samsung employees could go on the first strike in the company’s history
The union argues that Samsung didn’t consider negotiating the latest salary hike with its employees. They wanted an average hike of around six percent. Reportedly, the company discussed with the labor-management council before announcing this year’s wages. However, its unionized workers say the council doesn’t represent their interests. The NSEU is the only body that has the right to negotiate wages on behalf of the company’s employees.
According to Yonhap News, the labor-management council is a “consultative body comprised of representatives of employers and employees at Samsung Electronics to discuss working conditions, including wages”. But employees seemingly don’t consider the wage agreement between the council and the company’s management team valid. The NSEU now wants a meeting with Samsung Chairman Lee Jae-yong and re-negotiate the salary hike.
“Samsung Electronics announced the final agreement without the consent of the union,” the NSEU said in a recent press conference outside a company building in Seoul. “We will join hands with other unions to fight to bring the company to the dialogue table and make it accept us”. Lee Hyun-kuk, a representative of the union, suggested that the “attitude” of Samsung chief Lee would decide their next step. If he is willing to negotiate, they may call off the planned strike.
“It depends on the attitude of Chairman Lee Jae-yong. We sincerely ask him to come to the table for talks,” the NSEU representative said (via Bloomberg). If the union goes on a strike, it would reportedly be the first since the founding of Samsung Electronics in 1969. The company, meanwhile, says that it has “followed all related procedures and will continue to communicate with the union”. It remains to be seen whether the two parties reach an agreement without workers going on strike.
2023-05-05 15:12:17