By D. Maan, Jadetimes News
Union Calls for Indefinite Strike
A union representing workers at South Korean technology giant Samsung Electronics has called on its roughly 30,000 members to go on strike indefinitely, as part of its campaign for better pay and benefits. The announcement came on the last day of a three day general strike organized by the National Samsung Electronics Union (NSEU).
Management’s Response
The union said it had made the decision after management showed no intention of holding talks over its demands. Despite the union’s claims of disrupted production, Samsung has disputed these assertions. "Samsung Electronics will ensure no disruptions occur in the production lines. The company remains committed to engaging in good faith negotiations with the union," the firm stated.
Union’s Determination
However, the union countered, "The company has no intention to engage in a dialogue even after the first general strike, thus we declare a second general strike starting from July 10th, lasting indefinitely." The NSEU, which represents nearly a quarter of Samsung Electronics' workers in South Korea, reported that about 6,500 workers have participated in the strike so far and urged more members to join.
Participation and Impact
A protest held on Monday saw around 3,000 attendees. A spokesperson for Samsung Electronics declined to comment on the number of workers who had joined the walkout. "In our view, there will be no production disruption," said Jung In Yun from Fibonacci Asset Management Global.
Historic Context
Last month, the union staged the first walkout at the company since it was founded five and a half decades ago. Samsung Electronics, the world's largest maker of memory chips, smartphones, and televisions, is the flagship unit of the South Korean conglomerate Samsung Group. The firm is the largest of the family controlled businesses that dominate Asia’s fourth largest economy.
Recent Developments and Market Reaction
Samsung Group was known for not allowing unions to represent its workers until 2020, when the company came under intense public scrutiny after its chairman was prosecuted for market manipulation and bribery. Following the NSEU announcement, the company's shares were trading flat to slightly lower on the Korea Stock Exchange. Last week, Samsung Electronics said it expects its profits for the three months to June 2024 to jump 15 fold compared to the same period last year, driven by a boom in artificial intelligence (AI) technology which has increased the prices of advanced chips, boosting the firm's forecast for the second quarter.
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