Samsung Electronics workers strike for the first time ever
How many members does the NSEU have, and what percentage of these members participated in the recent strike?
The National Samsung Electronics Union (NSEU) has approximately 28,400 members. It is unclear exactly how many of these members participated in the recent one-day strike, but the majority of the striking workers reportedly came from Samsung's chip division. The strike marked the first time in Samsung Electronics' history that workers staged a walkout.
Why is the timing of the strike particularly problematic for Samsung, especially in relation to its semiconductor division?
The timing of the strike is particularly problematic for Samsung, especially in relation to its semiconductor division, due to several factors. Firstly, Samsung's semiconductor division has been facing increased competition from other chipmakers, particularly in the growing market for AI chips. Last year, the division reported a 15 trillion won ($11 billion) loss, leading to a 15-year low in operating profits. This was partly because Samsung was not prepared for the increased demand for high-bandwidth memory chips, which are in demand for powering next-generation generative AI features. As a result, local rival SK Hynix was able to take the top spot in the industry.
Secondly, the strike comes at a time when Samsung is trying to regain its position as a top semiconductor company. The current AI boom has played a significant role in the massive loss experienced by Samsung's semiconductor division. The company is optimistic about a resurgence in demand for mobile devices this year, particularly with the rollout of new products, such as AI-powered smartphones. In this context, any disruption to the production or a negative perception of the company could hinder its efforts to regain market share and improve its financial performance.
Lastly, the strike is significant simply because it is happening at Samsung, a company that is responsible for roughly 20% of South Korea's GDP. Any issues within the company can have a broader impact on the country's economy. Furthermore, Samsung has a decades-long history of illegal union-busting, and how it handles the conflict going forward will be a direct test of its commitment to end its "no-union management" policies.
What specific demands are the National Samsung Electronics Union (NSEU) making in their strike at Samsung's Seoul office building?
The National Samsung Electronics Union (NSEU) is making several demands during their strike at Samsung's Seoul office building. These demands include better pay, improved performance bonuses, and an additional day of annual leave for employees. The strike was called after negotiations over these issues reached a standstill.