Samsung Faces Strike Threat

Samsung Faces Strike Threat as Pay Talks Collapse

On February 20th, according to reports from the media, insiders in the industry mentioned that negotiations between the management of Samsung Electronics in South Korea and the National Samsung Electronics Union (NSEU) have hit a deadlock in their sixth round of wage increment discussions, potentially leading to the first-ever strike in Samsung’s history.

It was disclosed that Samsung’s management proposed a 2.5% raise, while the union demanded an 8.1% increase. Due to the failure to bridge this gap, the negotiations eventually collapsed.

The union disclosed their plan to escalate this dispute to the National Labor Relations Commission later today. The commission will mediate for a period of 10 days. If no agreement is reached during this process, the union will be legally authorized to initiate a strike.

It is known that Samsung Electronics has never experienced a strike since its establishment in 1969.

However, reports also suggest that if the Samsung management presents an improved plan, the union intends to resume negotiations even after the mediation process has commenced.

Currently, the National Samsung Electronics Union is the largest organization among Samsung’s affiliated unions, with approximately 17,000 members.

Recently, the Samsung Group Federation, comprising 11 unions from Samsung subsidiaries, issued joint demands regarding the improvement of working conditions and labor relations by 2024, calling for a universal 5.4% wage increase. They also put forward the “seven demands,” including ensuring a five-day rest period and payment for leave.

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