Samsung Electronics Workers’ Union of Korea (hereinafter referred to as the All-Samsung Electronics Workers’ Union) announced a general strike on 1st July due to major differences in labour-management negotiations , and stated that it will continue to assert its demands until the employees’ demands for salary and vacation benefits are met.
According to Reuters, the union has about 28,000 members, accounting for about 20% of Samsung Electronics’ total employees. The union is demanding an additional day of paid annual leave for employees and compensation for union members who did not sign the 2024 salary negotiation contract.
It was reported on 29th May this year that the three trade unions started salary negotiations in January this year, but failed to narrow the differences.
After mediation by the Central Labour Committee of Korea, suspension of the decision and a vote by union members, the union obtained the legal right to strike and announced a strike on 29th May; on 7th June, the union initiated the first strike in the 55-year history of Samsung Electronics.
The dispute between the two parties mainly consists of two points:
The salary increase is too low: The National Samsung Electronics Workers’ Union in South Korea believes that the 5.1% increase is too low and demands that the salary increase be increased to 6.5%.
Performance bonus system: The labour union asked Samsung Electronics to adjust the measurement standard for performance bonuses from economic value added (net operating profit after tax minus capital investment) to operating profit, the same as SK Hynix and LG Electronics.
“We are declaring a nationwide general strike today,” union president Son Woo-mok said in a YouTube live broadcast.
“We will continue to fight in a ‘no pay, no work’ strike until our demands are met.“
