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Samsung union announces 'indefinite' strike; risk of semiconductor plant shutdown rising

Daniel Chiang, Taipei; Jack Wu, DIGITIMES Asia 0

Credit: AFP

Samsung Electronics' largest union, the National Samsung Electronics Union (NSEU), initially planned a three-day strike starting on July 8. However, the union recently announced that it will initiate a two-phase indefinite strike starting on July 11, adopting a tough stance against company management.

According to reports from ZDNet Korea and The Korea Economic Daily, the NSEU stated that since the company didn't show a willingness to engage in negotiations after the first phase of the strike, they decided to proceed with the second phase of an indefinite strike. The union stated that the resolution meeting on July 8 successfully motivated union members, and the more than 25,000 members who previously didn't participate in the strike would no longer hesitate.

This strike marks the first "no work, no pay" general strike in Samsung's 55-year history. The main demands include increasing the salaries of 855 union members who did not agree to management's proposed basic raise rate (5.1%), improving the Overall Performance Incentive (OPI) system, fulfilling promises of paid leave, and compensating union members for economic losses incurred during unpaid strikes.

The NSEU currently has over 30,000 members, accounting for 24.7% of the total workforce, with most members coming from the Device Solutions (DS) division. According to the organizers, 6,540 people participated in the strike, with 5,211 from semiconductor equipment, manufacturing, and R&D roles. Samsung, however, stated that the actual number of participants was around 3,000.

Initially, the industry believed that since most semiconductor production lines are automated, a short-term strike would not directly affect production too much. Samsung also emphasized that it had ensured production line stability through alternative staffing.

However, with the strike duration now extended, the impact on semiconductor plants, which require 24-hour shifts, could continue to expand. The NSEU further stated that they have confirmed the impacts on production lines, though it remains to be seen whether there will be significant losses.