The National Samsung Electronics Labor Union (Image courtesy of Yonhap)
SEOUL, Jul. 3 (Korea Bizwire) – In an unprecedented move, Samsung Electronics’ largest labor union has declared its intention to stage a full-scale strike, raising concerns about potential disruptions at the tech giant’s operations.
The National Samsung Electronics Labor Union, representing approximately 28,000 workers or 22% of the company’s workforce, announced on July 1 that wage negotiations with management had broken down. The union stated it would proceed with an indefinite strike until its demands are met.
Union leaders have proposed a three-day strike from July 8 to 10, marking the first such action in Samsung Electronics’ history. The impact of a walkout by such a significant portion of the workforce could be substantial, industry observers note.
However, the union’s decision is facing internal criticism, with some members arguing that the strike primarily benefits a small faction of hardline unionists. This has led to speculation that actual participation in the strike may be limited.
At the heart of the dispute is the union’s demand for higher wage increases for 855 members who did not sign the annual salary agreement. Earlier this year, Samsung Electronics and its employee representatives agreed to an average 5.1% pay raise through the company’s labor-management council. The union is now pushing for a more substantial increase for those who rejected this offer.
This focus on a relatively small group of employees has drawn criticism even from within the union. Some members argue that advocating for higher raises for just 855 individuals out of 28,000 union members lacks broader support and fairness.
Industry insiders suggest that management is unlikely to acquiesce to these demands, as it could create equity issues among employees. “Pushing for benefits for a specific minority is a self-serving approach by the union,” one industry source commented. “It lacks justification and is impractical.”
The National Samsung Electronics Labor Union (Image courtesy of Yonhap)
The union is also calling for improvements to the company’s profit sharing system, implementation of promised paid leave, and compensation for wages lost due to the strike.
Despite the strike announcement, there are doubts about how many union members will actually participate. Previous union-led actions, such as a coordinated use of annual leave in June, saw limited participation. Some observers expect a similar outcome this time, potentially minimizing disruptions to Samsung’s production.
The union initially declared its intent to strike on May 29, encouraging members to use their annual leave on June 7. While exact participation numbers were not disclosed, sources suggest the turnout was lower than expected, with little impact on operations.
The current strike threat comes as the union’s status as the company’s primary bargaining representative is set to expire in August, which may influence its negotiating strategy.
The path to this point began in January when the union started negotiations with management. After mediation efforts by the National Labor Relations Commission failed in March, union members voted to authorize a strike.
Despite the escalating tensions, both sides attempted to resolve their differences through additional mediation. On June 27, a four-point compromise was proposed, including measures to address wage adjustment announcements and vacation policies. However, union members voted to reject this proposal, setting the stage for the current standoff.
Kevin Lee (kevinlee@koreabizwire.com)
