Over 6500 Samsung Workers Go on Strike Demanding Higher Wages

TapTechNews July 8th news, more than 6500 workers of Samsung Electronics Company went on strike today, demanding higher wages and performance adjustment. The Korean trade union leaders hope this three-day strike protest can convey these messages to Samsung.

The negotiation between the two sides on salary and vacation time broke down last month. The largest trade union of Samsung planned to go on strike after several weeks of preparation, marking an upgrade from the one-day strike in early June - this is the first strike in the 55-year history of Samsung.

According to TapTechNews' previous report, the disputes between the two sides mainly include the following two points:

Too low salary increase: The National Samsung Electronics Union in Korea believes that the increase of 5.1% is too low and requests to increase the salary increase rate to 6.5%.

Performance bonus system: The trade union side requests Samsung Electronics to adjust the measurement standard of the performance bonus from calculating by economic added value (after-tax operating net profit minus capital investment) to calculating by operating profit as the same as SK Hynix and LG Electronics.

The trade union leader, Sun Yumu, said, The goal of our strike this time is to disrupt production. The trade union said that most of the workers participating in the strike on Monday were chip assembly line workers.

Bloomberg said that Samsung is at a critical moment and cannot afford internal unrest or production chaos. In May this year, Samsung suddenly replaced the person in charge of the semiconductor department and is now trying its best to convince Nvidia to use its high-end AI memory chips. In addition, Samsung accounts for about 20% of the global DRAM market and about 40% of the NAND flash memory market. Any operational interruption may have a chain reaction.

The representative of Samsung refused to comment on this.