On May 29th, the national union of Samsung Electronics announced the company's first-ever strike in its history.
Reportedly, the union held a press conference on that day in front of Samsung Electronics' headquarters building in Seocho-gu, Seoul, accusing the management of neglecting the workers' concerns as the reason for the strike.
The union began a 24-hour sit-in demonstration in front of the headquarters building on the same day, planning to initiate collective actions by first consuming annual leave and other means, rather than immediately resorting to a full-scale strike.
The union executive committee has instructed members to collectively take a day off on June 7th.
On the 29th, a press conference announcing the nationwide strike of Samsung Electronics' union was held in front of the Samsung Electronics office building in Seocho-gu, Seoul.
This move comes just a day after negotiations on this year's wage agreement between labor and management collapsed.
Currently, the union has over 28,000 members, accounting for about 22% of Samsung Electronics' total workforce.
If the union proceeds with a full-scale strike, Samsung Electronics is expected to be significantly affected.
It's reported that negotiations on wage issues between Samsung Electronics' labor and management have been ongoing since January this year but have failed to reach an agreement.
One of the key issues is bonuses.
In March this year, the Samsung Labor Committee decided to increase wages by 5.1%.
Son Woo-mok, the head of the Samsung Electronics union, stated that the union had accepted the company's proposal for a wage increase but requested an additional holiday and the establishment of a transparent system to calculate performance bonuses based on sales profits.
Subsequently, through mediation by the Korean Central Labor Commission and a vote by union members, the union obtained the legal right to strike.
Samsung Electronics is the world's largest memory chip manufacturer, and this strike could pose a threat to the global semiconductor supply chain.
After news of the strike emerged, Samsung Electronics' stock price fell by 3%, and the South Korean composite index fell by 1.67%.
Since April, Samsung Electronics' stock price has cumulatively declined by 12%, with its latest market capitalization at 449 trillion won.
Son Woo-mok stated last year that once a strike occurs, it will have a significant impact on the South Korean economy and the global supply chain.
He warned, "Even if the chip factory stops for only one second, the impact on the company will be significant."
Because once the factory equipment stops, restarting the production line will require a considerable amount of time, making the entire process very cumbersome.
This strike is not only a challenge for Samsung Electronics but could also have a significant impact on the overall South Korean economy.
Because Samsung Electronics is one of South Korea's largest companies, its domestic and international businesses have a huge impact on the South Korean economy.
Furthermore, due to Samsung Electronics' position in the semiconductor field, any interruption in its production could lead to a shortage in the global semiconductor market, affecting the normal operation of various industries.
Meanwhile, the strike also highlights the tense situation in South Korea's labor-management relations.
As workers demand higher working conditions and wage treatment, the contradictions between companies and unions are intensifying.
This not only requires government mediation and guidance but also requires more equal and harmonious labor-management relations between companies and unions to ensure the stability and sustainable development of the South Korean economy.
In summary, the strike by the Samsung Electronics union will have far-reaching effects on the company, the South Korean economy, and the global semiconductor supply chain.
How to properly resolve labor-management conflicts has become an urgent and important issue that needs to be addressed.
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