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Samsung faces the threat of the biggest strike in history: blaming wage increases for being too slow

via:芯智讯     time:2023/5/26 22:04:06     readed:66

According to the British Financial Times, CNBC and other foreign media reports, due to Samsung Electronics 2023 salary increase did not meet the expectations of the unionThe Samsung Electronics union plans to launch a historic strike, which makes Samsung Electronics face the threat of a large-scale strike for the first time since it was founded in 1969.

Reported that in recent years, as Samsung's salary lags behind that of SK Group subsidiaries, more and more employees have joined the union in order to seek higher pay and leave conditions.

In just four years, Samsung's union membership has soared from three to 10000, accounting for about 9 per cent of its 120000 employees in South Korea.

Although this proportion is still well below the 46% average of South Korea's big companies, Samsung Electronics did not formally approve the union until 2020.

Samsung Electronics announced in April that it would raise the salary of its best employees by 4.1%, while that of the average employee by only 2%. But the Samsung electronics union demanded a salary increase of more than 6% in 2023, in part to offset South Korea's inflation rate of more than 4%.

The Samsung Electronics Union has held more than 20 negotiations with Samsung executives this year, and now that the talks are deadlocked, the union has asked Samsung Group and Samsung Electronics President Lee Jae-yong to come forward.

Son Woo-mok, leader of the Samsung Electronics union, said that if Lee still refuses to communicate, the strike will go into the voting process, but the union has not set a deadline for response.

He said: & ldquo; We will wait patiently for Li Zaorong's reply, because if there is a strike, it will have a great impact on the national economy and the global supply chain. & rdquo

Son warningEven if the fab is shut down for only one second, the follow-up impact will be huge. He was referring to the lengthy process that a fab must go through to restart production.

Samsung Electronics is under tremendous pressure due to the continued weakness in the consumer electronics and memory chip markets.

According to Samsung Electronics' financial report, Samsung Electronics' operating profit in the first quarter of this year was 640.2 billion won, down 95% from a year earlier, and its net profit was 1.57 trillion won, down 86.1% from a year earlier, the lowest since 2009.


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