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Samsung Union Threatens Chip Production Strike
17 Mar
Summary
- Samsung's largest union threatens strike action in May.
- The union seeks a 7% base wage increase and bonus reforms.
- A strike could disrupt half of Pyeongtaek's chip output.
The primary union at Samsung Electronics has initiated a strike vote, with potential disruptions to chip production looming if demands are not met. The Samsung Electronics Labour Union (SELU) has proposed an 18-day strike commencing on May 21, threatening to halt roughly half of the output at the company's Pyeongtaek semiconductor complex in South Korea.
This action stems from growing employee frustration over a pay gap compared to competitors like SK Hynix. The union is seeking a 7% increase in base wages, the removal of a cap on performance pay, and a bonus system tied to operating profit, replacing current criteria they deem outdated. Over 90,000 unionized workers are eligible to vote on the strike.
Samsung acknowledges the wage demands and has offered its own proposals, including a 6.2% pay raise and special bonuses. However, the company warns that halting production could severely damage customer trust and its reputation, with recovery potentially taking years. This situation also highlights a developing labor relations landscape for Samsung, which historically operated with a "no-union" policy.
