The corridors of Samsung, a global tech giant and manufacturer of multiple mobile and electronic devices is currently in crisis as workers commence a three-day general strike over pay and staff benefits.
This was made known yesterday by Son Woo-mok, head of the National Samsung Electronics Union, who, alongside tens of thousands of the tech giant’s protesting workers, wore rain jackets and ribbons and gathered outside the company’s foundry and semiconductor factory in Hwaseong, Gyeonggi, an hour south of Seoul saying, “fight with solidarity.”
According to reports, the workers had rejected a 5.1 per cent pay hike offered them by the company earlier in March this year and are clamouring for substantial response to their previously outlined demands, including improvements to annual leave and transparent performance-based bonuses.
Speaking to newsmen, Son Woo-mok, who confirmed the commencement of the strike on Monday, warned that the action could impact memory chip production which may likewise impact Samsung Electronics’ title as the world’s largest memory chip maker.
Samsung Electronics account for a significant chunk of the global output of high-end chips.
The management of Samsung has been locked in negotiations with the union which has more than 30,000 members or more than a fifth of the company’s total workforce.
Despite talks on multiple occasions, the two sides have failed to narrow differences on benefits and a rejected 5.1 per cent pay raise offer from the firm leading to the union’s announcement of a three-day general strike last week Friday.
The union said, embarking on a strike was a last resort after talks broke down. This was as it also disclosed that about 5,200 people from factory facilities, manufacturing and development had joined the protest by Monday.
Son Woo-mok said, “The strike has started from today,” adding that “today’s general strike is just the beginning.”
Addressing the crowd of workers who gathered outside the tech giant’s factory, the leader of the union also said, “recalling why we are here, please do not come to work until July 10th and do not receive any business calls.”
On his part, vice president of the union, Lee Hyun-kuk also emphasized the impact the action would have on the company’s production line.
He asked, “do they still not think this will affect their production line?”
This move follows a one-day walkout in June, the first such collective action at the company, which went decades without unionisation.
It was gathered that Samsung Electronics has a track record of avoiding its employees unionising for almost 50 years. According to critics, the company would sometimes adopt ferocious tactics while rising to become the world’s largest smartphone and semiconductor manufacturer.
Company founder Lee Byung-chul, who died in 1987, was also adamantly opposed to unions, saying he would never allow them “until I have dirt over my eyes”.
Meanwhile, the National Samsung Electronics Union, while sending an appeal out to members last week said, “we are now at a critical crossroads.”
The appeal urged workers to support the strike, stating that it was the last card it could use and therefore, workers at the company needed to “act as one.”
On their part, a union member and protester who spoke with newsmen said, “I’m really excited. We’re making history.”
Meanwhile, the management of Samsung Electronics had in a statement on Friday, said it has been “diligently engaging in negotiations with the union and will continue to do so”, and that there is “no impact on production and business activities”.
The company added that the paid leave usage rate on Friday was “lower than that of June 5 last year”, which, like June 7, was sandwiched between a public holiday and a weekend.
