[News] Samsung’s Labor Union Intends to Launch Indefinite Strike

2024-07-10 Semiconductors editor

Starting from July 8th, Samsung Electronics’ labor union, comprising over 28,000 workers, has initiated a three-day strike. However, as the dispute with Samsung escalates, the union declared earlier today that the workers plan to go on an indefinite strike, according to reports from Bloomberg and BBC.

On Monday, thousands of workers gathered outside Samsung’s chipmaking facilities south of Seoul to begin what was initially a three-day walkout aimed at securing improved pay. This marks the largest organized labor action in the conglomerate’s fifty-year history.

As the two parties are unable to reach a consensus, the three-day strike seems to further prolong. According to Bloomberg, the union announced on its website that as the management has shown no willingness to engage in dialogue, they have identified clear disruptions in production, and the company will regret this stance.

However, Samsung has challenged the assertion, saying that it will take necessary steps to prevent any disruptions in production lines. The company remains dedicated to conducting negotiations with the union in good faith, according to BBC’s report.

Regarding the impact of the Samsung strike, TrendForce analyzed that because semiconductor factories rely on automated production with low actual manpower requirements, the strike did not affect Samsung’s production. Even if the strike is extended, the current assessment is that there will still be no significant impact.

The strike does come at a sensitive time, though, as the tech giant has a busy schedule ahead. It is going to unpack its latest Galaxy lineup in Paris soon, while the company is also working on the qualification of its HBM3e products with NVIDIA.

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(Photo credit: Samsung)

Please note that this article cites information from Bloomberg and BBC.

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