First-time strike by Samsung workers follows failed wage discussions.
On Wednesday, during a livestreamed press conference on the Nationwide Samsung Electronics Union's (NSEU) official YouTube channel, the union announced that its 28,000 members, which make up nearly a quarter of Samsung's workforce in South Korea, would go on strike on June 7th. This follows unsuccessful negotiations over salary and bonus matters.
The union reps stated, "We can't continue allowing a company that refuses to negotiate." They asserted their commitment to fighting for workers' rights and interests. Son Woomok, a local leader, mentioned in an interview with CNN that a significant portion of NSEU members worked in Samsung's primary semiconductor division.
He elaborated, "We're asking for clear and fair performance bonuses as well as pay increases." He further noted that in the past, wage discussions occurred without involvement from labor unions such as theirs and that Samsung simply informed them to accept the outcome.
In response to CNN, a Samsung representative commented, "Our company still intends to have honest conversations with the union and is making every effort to reach an agreement."
Samsung Electronics has faced difficult times. Last year, a major worldwide shortage of computer chips as a result of the Covid-19 pandemic was followed by a decrease in demand due to global economic unpredictability. Samsung's annual performance for 2023 was the weakest since 2009, according to the Wall Street Journal, with an operating profit of 6.567 trillion won (approximately $4.8 billion). The company also lost its top position as the global smartphone leader.
However, with the rise of AI, the corporation is feeling more positive about the future. They anticipate an increase in demand for mobile devices this year, particularly with the upcoming release of groundbreaking products, such as AI-powered smartphones.
In the previous month, Samsung announced a significant increase in first-quarter operating profit, following predictions of high demand for AI and premium chips, where they compete with Intel (INTC) and Taiwan Semiconductor Manufacturing Company (TSMC).
The majority of the world's high-end microchips are manufactured in just two locations: Taiwan and South Korea. The Taiwanese industry is more extensive and dominating, and South Korea is eager to challenge this position.
CNN's Manveena Suri aided in reporting.
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During the press conference, Son Woomok, a NSEU leader, highlighted the semiconductor division's tech-focused employees who are demanding fair performance bonuses and pay increases. The South Korean tech giant, Samsung Electronics, is optimistic about the future, forecasting increased demand for mobile devices due to AI advancements and the release of innovative products.
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