Samsung workers plan strike at critical time
▼ Summary
– Over 47,000 Samsung Electronics workers will strike for 18 days starting Thursday at domestic chipmaking plants, after bonus negotiations collapsed.
– Samsung management rejected mediation from South Korea’s National Labor Relations Commission, despite the union agreeing to it.
– The union demands performance bonuses equal to 15% of operating profit and removal of a cap limiting bonuses to 50% of annual wages.
– The strike occurs during record profits for Samsung, the world’s largest memory chip producer, amid an ongoing chip shortage.
– South Korean officials urged a settlement, and the government may invoke “emergency adjustment” powers to prevent the strike, given Samsung’s economic significance.
More than 47,000 Samsung Electronics workers are preparing for an 18-day walkout after talks over performance bonuses fell apart between the company and its union. The strike is scheduled to begin on Thursday and will be concentrated at Samsung’s domestic chipmaking facilities, intensifying fears about tight memory chip supply amid a persistent global shortage.
Although the union accepted a mediation proposal from South Korea’s National Labor Relations Commission (the terms of which remain undisclosed), Samsung’s management rejected the offer without providing any reasoning, according to Nikkei Asia.
At the heart of the dispute, the union is demanding performance bonuses equal to 15 percent of Samsung’s operating profit, along with the removal of a cap that limits bonuses to 50 percent of annual wages. The breakdown in negotiations comes at a time when Samsung is posting record profits and holding its position as the world’s top producer of memory chips.
In the days leading up to the strike, South Korean government officials pressed both sides to find common ground. Prime Minister Kim Min-seok reportedly cautioned that the government could intervene to block the strike if necessary. Under South Korean law, an “emergency adjustment” may be invoked when labor disputes risk harming the national economy or daily life. Samsung is South Korea’s largest corporation, accounting for roughly 23 percent of the country’s exports and 26 percent of its total market capitalization, as reported by CNBC.
(Source: The Verge)
