A union representing workers at South Korean technology giant Samsung Electronics has called on around 30,000 workers to go on strike indefinitely, as part of its campaign for better pay and benefits. The announcement came on the last day of a three-day general strike being held by the National Samsung Electronics (NSEU).
The union said it came to this decision after management showed no interest in holding discussions over its demands. The NSEU, which represents almost a quarter of Samsung Electronics’ workers in South Korea, said its actions have disrupted production. Samsung has disputed this claim.
"Samsung Electronics will ensure no disruptions occur in the production lines. The company remains committed to engaging in good faith negotiations with the union," the firm told BBC News.
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How Will This Strike Affect Samsung Electronics?
The union's response has said: "The company has no intention to engage in a dialogue even after the first general strike, thus we declare a second general strike starting from July 10th, lasting indefinitely."
"In our view, there will be no production disruption," Jung In Yun, from Fibonacci Asset Management Global told BBC News.
In June, the union staged the first walkout at the company since it was founded five and a half decades ago. Samsung Electronics is the world’s largest maker of memory chips, TVs, and smartphones. It is the flagship unit of South Korean conglomerate Samsung Group.
Samsung Group was famous for not allowing unions to represent its workers until 2020 when the firm came under intense public scrutiny after its chairman was prosecuted for market manipulation. After the NSEU announcement, Samsung’s shares were trading flat to a little lower on the Korea Stock Exchange.
Previously, Samsung Electronics said it expects its profits for the three months to June 2024 to jump 15-fold compared to the same period in 2023. A boom in AI tech has boosted the prices of advanced chips, driving up the company’s forecast for the second quarter.
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