Samsung Electronics Co.'s workers union has announced plans to launch the company's first-ever strike, driven by demands for improved wage options after failed negotiations with management.
The National Samsung Electronics Union (NSEU), which includes approximately 28,000 members and is the largest union at Samsung, made the announcement on Wednesday during a live-streamed press conference.
Following the announcement, Samsung's shares fell by 3.1 percent in South Korea, closing Wednesday's trading at 75,200 won.
The union is demanding a 6.5 percent pay increase and bonuses tied to the company's earnings. Despite initiating negotiations at the beginning of the year, the union and management failed to reach an agreement on wage terms.
During the press conference, a union official stated that the union has called for a strike, urging all members to take annual leave on June 7 as an initial step. "We can no longer tolerate persecution against labor unions. We are striking in response to the company's neglect of laborers," said a union representative.
Last week, over 2,000 NSEU members demonstrated in Seoul, demanding better wages.
Samsung, the world's largest producer of memory chips, televisions, and smartphones, has indicated that it will continue negotiations with the union.
This development comes as Samsung is making significant efforts to enhance its semiconductor business and competitiveness amid soaring chip demand and an uncertain global business environment. The company is expanding its semiconductor manufacturing and research and development activities, particularly in the United States, to meet the increased demand.
Last week, Samsung appointed Young Hyun Jun as the new chief of its chipmaking unit, Device Solutions Division. In mid-April, the U.S. government offered up to $6.4 billion in funding to Samsung for building semiconductor manufacturing and research and development facilities in Texas. This funding is part of Samsung's proposed investment of over $40 billion to establish a semiconductor manufacturing cluster in the state over the next few years.
In its latest first-quarter report, Samsung recorded significantly higher net income and operating income, largely due to the Memory Business returning to profitability by addressing demand for high value-added products. Sales also increased, driven by strong sales of flagship Galaxy S24 smartphones and higher prices for memory semiconductors.
