Samsung union announces “indefinite” strike; risk of semiconductor plant closure increases

The National Samsung Electronics Union (NSEU), the largest union of Samsung Electronics, had originally planned a three-day strike starting on July 8. However, the union recently announced that it would launch an indefinite strike in two phases starting on July 11, taking a tough stance against the company’s management.

According to reports from ZDNet Korea And The Korea Economic DailyThe NSEU said that since the company had not shown any willingness to negotiate after the first phase of the strike, it had decided to proceed with the second phase of an indefinite strike. The union said that the resolution meeting on July 8 had successfully motivated union members and that the more than 25,000 members who had not previously participated in the strike would no longer hesitate.

This strike is the first general strike under the slogan “no work, no pay” in Samsung’s 55-year history. The main demands include salary increases for 855 union members who did not agree to the basic increase (5.1%) proposed by management, an improvement in the Overall Performance Incentive (OPI) system, fulfillment of promises regarding paid leave, and compensation to union members for economic losses they incur during unpaid strikes.

The NSEU currently has over 30,000 members, representing 24.7% of the total workforce. Most of the members are from the Device Solutions (DS) division. According to organizers, 6,540 people participated in the strike, including 5,211 from semiconductor equipment, manufacturing and R&D. However, Samsung said the actual number of participants was around 3,000.

Initially, the industry assumed that a short-term strike would not affect production too much, as most semiconductor production lines are automated. Samsung also stressed that it had ensured the stability of the production lines by finding alternative staff.

However, now that the strike has been extended, the impact on semiconductor factories that require 24-hour shifts could be even greater. The NSEU further said it had confirmed the impact on production lines, but it remains to be seen whether there will be significant losses.