Workers' unions always dangle the threat of a strike when negotiating with the company. That's just how these things go. Strikes aren't a big deal if the union calls for them often, but they are a significant event if they've never happened at a company before, as it signals the acceptance of a new normal.
The largest workers union at Samsung Electronics, the crown jewel in Samsung's portfolio, have gone on strike today for the first time in 55 years. Whether this will cause Samsung to budge from its position remains to be seen.
Samsung Electronics sees its first worker strike in five decades
The National Samsung Electronics Union (NSEU) and Samsung Electronics have been in lengthy negotiations for some time now. The union is asking for better pay and other perks. While Samsung has agreed to a pay raise, there hasn't been an agreement yet on the other demands.
The union had been threatening for a strike since a few weeks. It had ultimately given a strike call for June 7, making it clear that the 30,000+ members that make up a fifth of the company's work force wouldn't come into work on that day if the demands aren't met.
Instead of buckling under the pressure, Samsung has chosen to ride this out. Since the union's demands weren't accepted, it went through with the strike today, making June 7, 2024 the first time in Samsung Electronics' history that its employees have gone on strike.
The union hasn't revealed how many of its members participated in the strike. Reports from South Korea indicate that it was primarily the workers from the company's Seoul headquarters that went on strike, rather than those who work at the production facilities.
Samsung Electronics has said that the strike isn't going to disrupt business activities or the production of its lucrative chips. Market analysts also feel that the strike won't have much impact on the company's production timelines.
Both sides remain firm on their demands and in the absence of any further negotiations, the deadlock may remain. The union only called for a one-day strike so the workers would be back to their jobs on Monday.
