The National Samsung Electronics Union, or NSEU, and the Korean giant failed to come to an agreement regarding the workers’ compensation increases and bonuses, resulting in a one-day protest. Around 28,000 employees have gathered around the company’s office, demanding better pay, with the event transpiring at a time when Samsung just recently experienced a financial rebound, posting a whopping 933 percent operating profit for Q1 2024. With the firm’s competitors working round the clock to ensure that they gain an edge in the artificial intelligence race, Samsung has another obstacle to overcome here.
One NSEU official said that the purpose of the strike was to have a ‘meaningful conversation’ with Samsung and hope that both parties can settle their differences amicably
Samsung attempted to meet its workers a little more than halfway by offering them a 5.1 percent increase in their annual compensation. However, the NSEU demanded a 6.5 percent increase, along with a piece of the profits that the Korean technology behemoth enjoys. Judging by the recent incident reported by Korea Times, both parties are at an impasse, resulting in a strike where an estimated 28,000 workers have gathered around Samsung’s Seoul office, demanding better pay.
One NSEU official, Lee Hyun-kuk, told Reuters that the protest was to have a meaningful dialogue with upper management. According to Samsung, the protest does not appear to have any deleterious effects on production or business activity. This is because the strike commenced a day after a public holiday was observed in South Korea, where several employees had already gone on annual leave.
One market researcher from TrendForce believes that the walkout is unlikely to impact DRAM or NAND flash memory production or increase shipment shortages as Samsung’s manufacturing facilities are highly automated. Additionally, the strike is said to have more people from Seoul headquarters than in production, meaning that Samsung may not have incurred any heavy losses at all.
However, neither side is budging an inch on their demands, so the protest may materialize into something more in the coming days. Lee Hyun-kuk has said that the union was preparing further action on Friday but left out the important details. Sadly, we cannot comment further about what will happen in the near future, but we will update our readers on the latest.
News Source: Korea Times
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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