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Strike | Samsung Union Brewing Strike as Wages Fall Short of SK Hynix
Reuters quoted the head of Samsung Electronics’ largest union, “Samsung Electronics Union (SELU),” stating that union members are voting on the strike plan in May and threatening to disrupt chip production.
The official said that if workers fail to reach an agreement, they plan to strike for 18 days starting May 21, which could affect about half of Samsung’s output at the large semiconductor campus in Pyeongtaek, south of Seoul. He stated, “I expect production to be disrupted.”
The conflict was triggered by wage disparities between Samsung and its competitor SK Hynix. The official said that since SK Hynix accepted the union’s wage reform demands last September, Samsung employees have become increasingly dissatisfied with the pay gap compared to major competitors, leading to a surge in union membership over the past few weeks.
He added that the chip industry is booming, but these profits have not benefited Samsung employees, which is the reason for the protest. He also revealed that over the past three months, more than 100 union members have left Samsung to join companies like SK Hynix.
Strikes cause production stoppages, damage customer trust, and take years to recover
Samsung is the world’s largest memory chip manufacturer. If a strike occurs, it could exacerbate the global semiconductor supply bottleneck. An anonymous Samsung official said that even a single production halt caused by a strike could damage customer trust and take years to restore.
A Samsung spokesperson responded that the company will continue to engage in sincere dialogue with employees.