'Strike indefinitely': Samsung Electronics workers continue to disrupt chip production
- The Samsung labor union announced that it would continue its strike indefinitely starting from Wednesday, as Samsung management did not express a willingness to engage in negotiations following the initial strike.
- On Monday, the National Samsung Electronics Union initiated a three-day strike for pay and benefits.
- On Wednesday, Samsung stated that it would prevent any interruptions in production and remain committed to negotiating in good faith with the union.
Samsung Electronics' labor union announced on Wednesday that its workers will continue their unprecedented strike indefinitely over pay and benefits.
The union's requests include a 3.5% increase in members' base wage, enhanced transparency in pay, and compensation for the economic losses of those who participated in the strike.
On Monday, the National Samsung Electronics Union, comprising approximately 30,000 members, initiated a three-day general strike due to an inability to reach an agreement on wage increase rate, vacation system, and bonuses after multiple negotiation sessions, according to local media reports.
According to local media, this is the first strike by the labor union in Samsung Electronics' 55-year history.
"Stay alert," the NSEU statement read, according to a Google-translation.
The labor union urged its members not to go to work until executive instructions were received.
On Wednesday, Samsung announced that it would prevent any disruptions in the production lines by extending the strike.
Samsung stated that it continues to be dedicated to participating in sincere discussions with the union.
The NSEU declared that the strike had disrupted chip production because Samsung management was not interested in negotiations.
Memory chips, commonly found in consumer devices such as smartphones and laptops, are produced by Samsung Electronics, the world's largest maker of this technology.
Shares of Samsung Electronics were down 0.34% Wednesday morning.
On Monday, a tentative wage agreement was reached between the South Korean automaker and its labor union, preventing a strike scheduled for Wednesday and Thursday, according to Yonhap news agency.
The salary increase is 111,200 KRW ($81) per month, along with a bonus and company shares.
– CNBC's Lim Hui Jie contributed to this report.
Asia Economy
You might also like
- The crusade against corruption in Malaysia is not over yet, says the Prime Minister, as the country continues to attract investment.
- Indonesia is pushing for significant policy changes in order to avoid the 'middle-income trap'.
- The shortage of rice in Japan, which has not been seen in years, is being intensified by tourists who crave sushi, as well as unfavorable weather conditions.
- Japan's workaholics may not be open to a four-day workweek.
- The Bank of Japan may raise interest rates in December, according to a CNBC survey.