Samsung and its largest labor union have resumed wage negotiations after a two-week strike. The two parties held a meeting on Tuesday, the Korean media reports. It was the first meeting since the union went on strike on July 8, and the ninth round of talks overall. The union plans to continue the strike until the company meets its demands.
Samsung resumes talks with its largest labor union amid an indefinite strike
On July 8, the National Samsung Electronics Union (NSEU) launched the biggest-ever labor action in the Korean firm’s decades-long history. It kicked off a three-day general strike demanding better pay, among other things. The union launched the strike after all previous talks with the company’s leadership team failed. Samsung allegedly failed to offer satisfactory concessions.
The firm didn’t budge even after a strike, prompting the NSEU to continue its action indefinitely. After two weeks of strike from thousands of employees across various business divisions—with a total membership of 31,000, the union accounts for approximately 24% of Samsung Electronics’ domestic workforce and 11% of its global workforce—the company finally agreed to resume talks.
According to Yonhap News, Samsung’s Vice President Kim Hyeong-ro met the NSEU head Son Woo-mok on Tuesday. The union demanded a 5.6% basic pay raise for all members, a guaranteed day off on its founding day, and compensation for economic losses due to the strike. The company, meanwhile, offered the same 5.1% increase in wages it put on the table several months back.
The firm reportedly emphasized “its commitment to building a win-win labor-management relationship.” However, the terms it offered still don’t meet the union’s demand. The NSEU may continue its strike if Samsung doesn’t come up with improved terms in the next round of talks. “Nothing will change if we do not act,” the union said in an official statement announcing its strike earlier this month.
The strike hasn’t affected the company’s business yet
Despite thousands of workers failing to turn up for work for over two weeks, Samsung hasn’t suffered major production disruption. The world’s largest memory chipmaker says the strike has had minimal impact on production. Perhaps that’s why it isn’t hurried to meet the NSEU’s demand.
However, if the strike continues for a few more weeks, Samsung may start feeling the heat. The semiconductor industry is flourishing on the back of the AI boom, and the Korean firm must be on top of its game to seize the opportunity. It has already lost the AI HBM (high bandwidth memory) race to SK Hynix and Micron. Hopefully, Samsung and NSEU will find a resolution soon.
2024-07-26 15:11:39