Samsung’s South Korean union ready for indefinite strike, jeopardising production of critical components – Firstpost

The Samsung Electronics Co. union, which represents over 28,000 workers, has launched an indefinite strike that poses a significant threat to the production capacity of the world’s largest memory chip maker.

The strike, which began as a three-day industrial action for higher wages, has now become the largest organized industrial action in Samsung’s history. Thousands of workers gathered outside Samsung’s chip manufacturing complex near Seoul, marking a dramatic confrontation with Korea’s largest company.

In response to the strike, the union accused Samsung management of avoiding dialogue and escalating tensions. The union warned of disruptions in the production of key components and stated that management would ultimately be forced to resume negotiations.

Samsung shares in Seoul fell slightly after news of the strike, reflecting concerns about potential production disruptions. Although much of Samsung’s production is automated, disruptions could affect critical operations, especially as the company seeks partnerships such as the one with NVIDIA Corp. for high-speed memory that are crucial to competing in AI technologies against rivals such as SK Hynix Inc.

Preparations for the strike were extensive. The union has been preparing for it for weeks after negotiations over wage and holiday policies failed last month. The move represents a significant escalation from a brief one-day strike in June that was unprecedented in Samsung’s 55-year history.

The union’s strategy aims to amplify its demands by directly impacting production at Samsung’s cutting-edge chip factories. At the same time, the strike coincides with Samsung’s major product launch event in Paris, where the company is expected to unveil new foldable phones and wearable devices with AI and innovative health monitoring features.

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