Samsung Electronics union representatives in South Korea say they are committed to an indefinite strike. Workers are demanding better pay and conditions. Most of the staff are in its semiconductor business. The tech firm says production and deliveries won't be interrupted, but workers say they're ready for a long battle.

Seoul

Samsung Electronics union representatives in South Korea have initiated an indefinite strike, marking a historic first for the company. The union members are seeking better pay, improved working conditions, and a more transparent bonus system. Most of the striking workers are employed in the company's semiconductor division, according to the National Samsung Electronics Union.

During a live stream, union leaders expressed their determination for a prolonged battle to achieve their demands. They emphasized the need for a strong, sustained effort to ensure management does not dismiss their concerns. Despite the union’s actions, Samsung has stated that the strike will not impact its production or distribution operations. The company has affirmed its commitment to negotiating in good faith with the union.

This strike comes at a critical time for Samsung, as its chip division is recovering from a challenging 2023. The company is also working to advance its position in the competitive market for high-bandwidth memory chips essential for artificial intelligence. Analysts have indicated that prolonged industrial action could potentially disrupt deliveries, affecting Samsung’s operations and South Korea's export-driven economy. They warn of possible repercussions for the stock market and exchange rates, highlighting the importance of avoiding economic instability.



Samsung Electronics union workers go on indefinite strike

Thousands of members of Samsung Electronics' largest union have declared an indefinite walkout, the first in the company's history. They're hoping to pressure management to meet their demands, including a salary increase, better working conditions and a more transparent bonus system. Most work in semiconductors, according to the National Samsung Electronics Union. Its leaders in a live stream pledged a prolonged fight. Our struggle needs to become stronger. If it diminishes, management will hold out and look down on us. Not long after the union declared its intention to fight on, Samsung reiterated that the strike won't affect its production or distribution. The company says that it remains committed to engaging in good faith negotiations with the union. The industrial action comes as Samsung's chip business is recovering from a losing streak in 2023, and racing to catch up with smaller competitors to produce high-bandwidth memory chips that support artificial intelligence. Analysts warn that if a prolonged strike causes delivery delays, it could have consequences not just for Samsung and its customers, but for South Korea's export-driven economy as well. The concern is the country's credibility could fall, the stock market would be severely impacted as well as the exchange rate. There could be widespread negative economic repercussions. This must be avoided. Samsung recently forecast first-half profits of more than 1,000 percent higher compared with last year. Investors and analysts will be watching to see how South Korea's flagship company will weather this unprecedented challenge. Eunice Kim, Al Jazeera, Seoul.

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