Thousands of Samsung workers launch indefinite strike over wage cut

Samsung Electronics union members in South Korea have extended their first strike in the company’s history indefinitely to demand better wages and benefits. The National Samsung Electronics Union (NSEU) called together its more than 30,000 members on Wednesday after the company’s management showed no signs of engaging in talks with the union following a three-day strike.

As reported by ReutersThe NSEU is demanding a 3.5 percent increase in basic salary, an extra day off to mark the union’s founding anniversary, and a fairer bonus system for executives and lower-ranking workers. Samsung, the world’s largest memory chip maker, announced an estimated 15-fold increase in its operating profit for the last quarter after semiconductor prices soared due to the ongoing AI boom.

The NSEU said its goal was to stop Samsung’s chip production. Reuters The strike had already slowed down production on certain chip lines. However, Samsung denies this and says the three-day strike did not affect chip production. “Samsung Electronics will ensure that there are no disruptions in the production lines,” the company said in a statement to Reutersand added that they “remain committed to negotiating in good faith with the union.”

Union officials said 6,500 workers participated in the first three-day strike that began on Monday and encouraged remaining members – who make up nearly a quarter of Samsung Electronics’ workforce in South Korea – to join the strike. “It’s time we need the strength and help of our colleagues,” NSEU Vice President Son Woo-mok said in a live broadcast on YouTube. “All members who participated in the first strike (should) continue to strike.”

The strike follows a sharp drop in Samsung’s profits in 2023 due to weaker demand for memory chips. Anything that could jeopardize the company’s recent recovery is cause for concern. But since Samsung accounts for around 20 percent of South Korea’s total GDP, the entire country could feel the impact.