A union representing tens of thousands of workers at Samsung Electronics in South Korea has called a one-day strike next week, which would be the first strike at the smartphone and chip maker.
The Nationwide Samsung Electronics Union (NSEU) said on Wednesday during a press conference streamed on its official YouTube channel that its 28,000 members – just under a quarter of the company’s total workforce in the country – would strike on June 7, after failed negotiations over wages. and bonus schemes.
“We can no longer afford to see a company that will not negotiate,” union representatives said, adding: “We will fight for the rights and interests of workers.”
Son Womok, a labor leader, told CNN that many NSEU members worked for Samsung’s flagship semiconductor unit.
“We demand transparent and fair performance bonuses and pay increases,” he said in an interview.
“There never was a proper wage negotiation. It has always been carried out by announcing the (outcome) in the Labor Management Council, which our union is not on, and the company told us to accept it,” he added.
In a statement to CNN, a Samsung spokesperson said: “The company remains committed to negotiating in good faith with the union and is making every effort to reach an agreement.”
The world’s largest memory chip maker has had a few difficult years. A historic shortage of computer chips during the Covid pandemic was followed by slumping demand last year as consumer interest in electronics remained weak amid global economic uncertainty.
In January, Samsung reported operating profit of just 6.567 trillion won ($4.8 billion) for 2023, its weakest annual performance since 2009, according to the Wall Street Journal. Samsung also lost its crown as the world’s largest smartphone maker.
But things are looking good for the company because of the AI boom.
It is optimistic about a revival in demand for mobile devices this year, especially with the rollout of new products such as AI-powered smartphones.
Last month, Samsung reported a more than tenfold increase in first-quarter operating profit amid forecasts of strong demand for AI and high-end chips, an area in which it competes with Intel (INTC) and Taiwan’s TSMC.
The vast majority of the world’s advanced microchips are made in just two places: Taiwan and South Korea. Taiwan’s industry is larger and more dominant, something South Korea is keen to challenge.
CNN’s Manveena Suri contributed to the reporting.
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