🚀 ProPicks AI Hits +34.9% Return!Read Now

Samsung Electronics workers to strike on July 8-10, union says

Published 07/01/2024, 09:09 PM
Updated 07/02/2024, 05:00 AM
© Reuters. FILE PHOTO: Son Woo-mok, president of National Samsung Electronics Union, looks up at the company building while staging a walkout protest, in Seoul, South Korea, June 7, 2024.    REUTERS/Kim Hong-Ji/File Photo
005930
-

By Heekyong Yang and Joyce Lee

SEOUL (Reuters) - A workers' union at Samsung Electronics (KS:005930) in South Korea has called a strike for July 8-10, union officials said on Tuesday, as it steps up industrial action against the country's most valuable company.

The union is determining how many workers will join the strike, Lee Hyun-kuk, vice president of the National Samsung Electronics Union, told Reuters by telephone.

Son Woo-mok, leader of the union, said late on Monday that the union wants a more transparent system for bonuses and time off, and wants the company to treat it as an equal partner.

Samsung declined to comment on the union's strike plan.

Its share price closed little changed, compared with a 0.8% decline in the benchmark price index.

Union membership increased rapidly after Samsung in 2020 pledged to stop discouraging the growth of organised labour.

The strike's purpose was to disrupt production, and the union could consider taking another round of strike if the company does not hear its demands, Lee said in a live YouTube broadcast later on Tuesday.

Analysts, however, say the strike itself is unlikely to have a major impact on chip output as most production at the world's biggest memory chipmaker is automated.

Any impact will ultimately depend on how many people who operate chip plants participate and for how long, said senior researcher Kim Yang-Paeng at the Korea Institute for Industrial Economics and Trade.

"Chip production cannot proceed with replacement workers" if people who operate the automated machines walked out for a long time "because of the specificity and expertise of the work," Kim said.

© Reuters. FILE PHOTO: Son Woo-mok, president of National Samsung Electronics Union, looks up at the company building while staging a walkout protest, in Seoul, South Korea, June 7, 2024.    REUTERS/Kim Hong-Ji/File Photo

Last month, workers took annual leave on the same day in what was effectively the union's first industrial action. At the time, Samsung said there was no impact on production or business activity. Those striking were mainly employed at inner-city offices rather than at manufacturing sites, analysts said.

"This planned strike marks a turning point in Samsung's history of non-union management. This could be seen as a drop in employee loyalty at Samsung ... caused by wages and disappointing compensation compared to Samsung's rivals," a Seoul-based analyst said on Tuesday, declining to be identified as details of the strike were unknown.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.