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Samsung Electronics Braces for Three-Day Union Walkout Amid Wage Dispute
The largest union at Samsung Electronics Co. has announced a three-day strike beginning July 8, amidst ongoing challenges for South Korea's tech giant, particularly regarding its semiconductor business. The National Samsung Electronics Union, which represents around 28,400 workers, disclosed this decision after wage negotiations failed to reach any breakthroughs.
Unresolved Wage Negotiations
Negotiations resumed on June 13 following a significant milestone in the company's history—a single-day strike on June 7, marking the first such event in Samsung's 55-year existence. Historically, Samsung Electronics has enjoyed a relatively peaceful labor environment, unlike other major Korean companies that have faced violent labor disputes, particularly in the automotive sector.
Union Demands
The union's current demands include additional paid leave and a higher wage increase for 855 workers who did not agree to a 3% annual basic pay raise. These demands were not met during recent discussions, according to Lee Hyun-kuk, the union's deputy secretary general.
Management's Stance
On Monday afternoon, union leaders had their first meeting with Jun Young Hyun, the new head of Samsung's semiconductor division. The management's stance during these negotiations is critical, as disputes remain unresolved over paid leave and bonus payments.
Future Uncertainty
It remains unclear how many union members will participate in the upcoming three-day strike. However, the union plans to encourage widespread participation. Historically, Samsung Electronics has set pay increases through a labor-management council. In March, this council agreed on a 5.1% pay rise for this year, split into a 3% basic pay increase and a 2.1% performance raise. However, this agreement was later retracted due to disagreements over paid leave and bonus issues.
This strike signals a new era of uncertainty for Samsung's workplace culture, marking a departure from its traditionally stable labor relations.
