Samsung Electronics union declares workers will go on strike "indefinitely"

midian182

midian182

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What just happened? Samsung will have other things on its mind today than the Unpacked event. An issue over better pay and benefits has led to the Samsung Electronics division's largest union declaring an indefinite strike, extending what was supposed to be three days of industrial action.

It was reported in May that Samsung Electronics was facing something it had never dealt with during the company's 55-year history: a worker strike. Representatives from the National Samsung Electronics Union (NSEU), which has more than 30,000 members, called for the action after talks over wage increases broke down.

A three-day general strike began on Monday (July 8), with thousands of workers protesting outside of Samsung's chipmaking facilities south of Seoul. Wednesday was supposed to be the last day, but the union said management had shown no intention of holding talks over its demands. As such, the union has declared a second strike that starts today and will last "indefinitely."

The NSEU said around 6,500 workers have taken part in the strike so far. It is calling for more of its members to join in the action.

"Management has no intention of dialogue," the union said in a statement on its website. "We have clearly identified line production disruptions and the company will regret this decision."

To try and attract more participants, the union said it will hold advertising campaigns at cafeterias inside chipmaking plants producing 8-inch wafers and high bandwidth memory (HBM) chips, which are in high demand due to the AI boom.

The union had demanded a 6.5% pay rise, an additional day of annual leave, and a bonus linked to the company's earnings. It has since revised those demands to a 3.5% increase in base salary and, instead of the extra day's annual leave, a day off to mark the union's founding. It also wants the rank-and-file workers and executives to have an equal bonus system.

Union vice-president Lee Hyun-kuk told Reuters that management had offered a 3% pay rise, adding, "We haven't spoken to management since we started the strike on Monday."

Any disruption to Samsung Electronics' production comes at a bad time for the South Korean giant. AI-related demand has seen Samsung estimate that its Q2 operating profits will jump 1,452% compared to a year ago. The company is also revealing the new Galaxy Z Fold 6 and Z Flip 6 foldable devices, along with several other new products, today.

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Samsung Electronics union declares workers will go on strike "indefinitely"

 
Glad I paused the other day when buying a new phone. I was looking at the S24+ and thought, "my S21+ is fine for now, if I'll think on it for a week or two"

What sucks for me is that Samsung seems to be the only premium android phone maker, but their software ecosystem is becoming increasingly annoying.

None of these companies are any good these days, there isn't any brand to move to in protest.
 
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I think it's fair to tie employee bonuses and wages to the windfall and high financial performance of Samsung lately. Samsung isn't in the position to do anything but cave to their demands right now.
 
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letsgoiowa said:
I think it's fair to tie employee bonuses and wages to the windfall and high financial performance of Samsung lately. Samsung isn't in the position to do anything but cave to their demands right now.
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The problem is that management at Samsung and many other companies don't think this way. They see their lowest level employees as replaceable and not deserving any of the profits they make. Instead they prefer to give all the bonuses to CEOs and managers. Now they will get a taste of what it's like when you ignore your rank and file workers who are actually responsible for those profits they refuse to share.
 
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Kashim said:
The problem is that management at Samsung and many other companies don't think this way. They see their lowest level employees as replaceable and not deserving any of the profits they make...
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If Samsung is right, they'll replace those workers and prosper. If they're wrong, they'll either be forced to cede to worker demands, or they'll go bankrupt resisting them. That's the beauty of the free market: a system that works as long as government doesn't get in the way by picking sides, I.e. "you can't fire striking workers". You could see the logic in this statement, or you could admit, "I'm one of those mindless worker drones, so I'm with them, right or wrong!"

Kashim said:
... Instead they prefer to give all the bonuses to CEOs and managers
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Golly, hate to interrupt a good tirade with a fact or two, but:

Feb 11, 2022: "...Samsung dished out 11 months’ worth of salary as a bonus to its employees to combat a shortage of qualified engineers. The 11-month total includes a two-month bonus paid out in December 2021 and an additional three-month “service bonus” in January 2022. Further adding to the financial windfall for Samsung employees is a bonus equal to half a year’s salary, linked to profit sharing. ...."

https://www.tomshardware.com/news/samsung-bonus-employees-tech-brain-drain
 
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Kashim said:
The problem is that management at Samsung and many other companies don't think this way. They see their lowest level employees as replaceable and not deserving any of the profits they make. Instead they prefer to give all the bonuses to CEOs and managers. Now they will get a taste of what it's like when you ignore your rank and file workers who are actually responsible for those profits they refuse to share.
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For lowest level employees who come and go all the time, it is not unreasonable to think so.
Of course, for people who stayed with the company for years, this is a must-have.
Anyone who grew with Samsung for a long time, helping it get where it is now deserves more than a typical salary.
 
A strike never benefits anyone. The question is how long can the employees hang on during a strike if it lasts for months? I'm sure many of them are well off but many have to pay their bills. Hopefully they'll wrap this up soon.
 
masaaya4 said:
A 3,5% pay increase seems like a negligible amount, especially considering the inflation that has been going on.
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Inflation in South Korea is currently running 2.6%. Union workers at Samsung average 80 million KRW a year (roughly $60,000), not counting incentive pay or bonuses, which can be substantial.

For comparison, the mean salary in South Korea in 2021 was 38 million KRM (about $28,000). Professionals with a masters degree earn 55M KRM (about $40,000).
 
There is a market for labor, which is the most important and undervalued commodity in the world. The workers of Korea don't just make Samsung's products, they buy them, pay the taxes that build the ports and roads from which they are exported, pay the soldiers who keep them safe, pay the taxes that educate all of the workers and managers, etc. Samsung may be able to replace these workers without increasing their pay. They may not. But in order for workers to get what they are worth, they must fight for it. Everything in life is a negotiation, and the person who will win any negotiation is the one who has the power to walk away. Can Samsung continue without labor? No. Can the workers continue without wages from Samsung? Basically yes. They can find work elsewhere, start their own businesses, or even go on the dole. I'm betting they will win this round.
 
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