A 3-day strike by Samsung employees has commenced today, with roughly 30,000 workers hailing from the National Samsung Electronics Union (NSEU) leaving their posts, demanding higher compensation as the Korean giant has failed to resolve. Previously, it was reported the NSEU demanded a 6.5 percent increase in their annual compensation, along with a piece of the profits that Samsung enjoys. It has been the first time in more than five decades that workers have called in a strike, but at the time of writing, there has been no production disruption.
30,000 employees going on strike make up almost 25 percent of Samsung’s workforce, but analysts say it is a low participation figure
The NSEU has also demanded an extra day of annual leave for unionized workers, according to Reuters. Samsung recently posted its revenue guidance and expects to make a 15-fold operating profit for its Q2 2024 earnings compared to the same quarter a year ago. Looking at these figures, it is clear that the company can offer some compensation to its workforce. To remind you, Samsung also earned a whopping 933 percent profit during its Q1 2024 quarter, so based on these numbers, the firm is enjoying some gargantuan earnings.
Another advantage that Samsung possesses is that the majority of its facilities are automated, with analysts claiming that low participation of the workforce and the lack of production disruption may not significantly impact the company’s output that it gives in to those demands. However, a reduction in staff morale is not a good look, especially when there is a growing trend of embracing generative AI by several technology firms, which Samsung stands to benefit from due to growing chip demand.
Lee Hyun-kuk, the NSEU’s Vice President, has said that there could be further strikes if Samsung does not improve its proposals. So far, Lee claims that the Korean titan has attempted to appease workers by offering pay flexibility and annual leaves, but its counter offers are not the original demands proposed by the employees. Union workers also want equality in the bonus system, as these funds are calculated by reducing the capital cost from operating profit. For Samsung executives, the compensation is entirely different and based on personal performance goals.
Samsung has not yet commented on the latest strike, but we will continue to monitor the situation and provide updates on the matter. Given that both parties are at an impasse, the 3-day strike could get longer.
News Source: Reuters
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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