Samsung Workers Stage Three-Day Strike for Better Pay: Union Leadership Cites Need for Greater Labor Education

Samsung Electronics workers in South Korea commenced a three-day strike for better pay and an additional day of annual leave. Low participation and automated production are expected to minimize the strike's impact on output. Union officials have criticized Samsung's bonus system as unfair and plan further action if demands aren't met.

Samsung Electronics workers in South Korea embarked on a three-day strike for better pay on Monday, with their union warning of further action should their demands remain unmet. The National Samsung Electronics Union (NSEU), representing about 30,000 members, also seeks an additional day of annual leave for unionized employees.

Despite the strike, analysts predict minimal impact on output due to low participation and automated production processes. The union previously staged its first industrial action last month, coordinating annual leave for a mass walkout, which Samsung claimed had no effect on business operations.

The company declined to comment on the ongoing strike. The union disclosed that 6,540 workers are participating this week, primarily at manufacturing sites and in product development. Union President Son Woo-mok contested reports of low participation, citing the union's youth and lack of extensive member education.

'Education about labor unions for union members and employees has been insufficient. But I don't think participation is low given our union's relative newness,' said Woo-mok. Senior union leader Lee Hyun-kuk indicated potential for further strikes if current demands are not addressed.

Union leaders argue that Samsung's bonus system is unfair, as it calculates bonuses by deducting capital costs from operating profit. Since Samsung's 2020 pledge to cease discouraging organized labor, union membership has grown, signaling waning staff loyalty and presenting a new challenge for the company. Analysts noted the firm faces stiff competition in the semiconductor market, particularly in AI applications.

Last Friday, Samsung projected over a 15-fold increase in second-quarter operating profit driven by rebounding semiconductor prices amidst the AI surge, although its stock performance still lags behind rival SK Hynix. Samsung's share price rose Monday, following significant gains from unexpectedly strong preliminary second-quarter earnings last week.

(With inputs from agencies.)