Samsung Workers to Begin Three-Day Strike Despite Low Expected Participation

By Madz Dizon

Jul 07, 2024 09:28 PM EDT

Samsung Workers to Begin Three-Day Strike Despite Low Expected Participation — A Samsung flag flutters outside the company's Seocho building in Seoul on July 5, 2024. Samsung Electronics said on July 5, it expects second-quarter operating profits to rise more than 15-fold on-year as chip prices bounce back and demand for generative AI continues to grow.
(Photo : JUNG YEON-JE/AFP via Getty Images)

A workers' union at Samsung Electronics in South Korea is planning to hold a three-day strike starting from Monday, July 8.

The union has also indicated that it may consider additional measures against the country's most influential conglomerate in the future.

Samsung Electronics Union Plans Three-Day Strike, Considers Further Actions

According to Reuters, a labor union representing a significant portion of Samsung Electronics' workforce in South Korea is calling for improvements to the company's performance-based bonus system and an additional day of annual leave for its members.

The number of workers who will participate in the strike is currently uncertain. However, according to a poll conducted by the union, approximately 8,100 members have expressed their intention to join as of Monday morning.

A rally is scheduled to take place on Monday morning near Samsung's headquarters in Hwaseong, south of Seoul. According to experts, the strike is not expected to significantly affect chip output since the majority of production at the largest memory chipmaker is automated.

Samsung Union's Previous Walkout Shows Limited Impact

Last month, the union organized a walkout by utilizing annual leave, marking their inaugural industrial action. However, the company stated that there was no discernible impact on production or business activity at the time.

Analysts suggest that Samsung, one of the world's leading chipmakers and smartphone manufacturers, is facing a new challenge in the form of decreased staff loyalty within the labor movement. This issue comes at a time when Samsung is already dealing with intense competition in the AI chip market, although it is not expected to significantly affect the company's output.

Samsung reported a significant increase in its second-quarter operating profit, thanks to the surge in semiconductor prices driven by the AI industry. However, despite this positive news, the company's share price has been trailing behind its South Korean chip competitor, SK Hynix.