Unionized workers at Samsung Electronics have ended their 25-day strike and are preparing to implement a new strategy of intermittent work stoppages. The National Samsung Electronics Labor Union (NSELU) is adopting this approach to push for improved wages and benefits while easing the financial strain on its members.
The strike, which began on July 8, was driven by the NSELU’s demands for higher wages, enhanced bonuses, and other benefits. As the largest of Samsung Electronics’ five labor unions, NSELU represents a significant portion of the workforce. On Thursday afternoon, the union decided to transition to a more sustainable approach, directing members to return to their jobs by Monday.
New Strategy and Rationale
“We must move to a strategy that minimizes the economic burden on our members while still putting pressure on management,” the union announced. This new plan includes surprise partial strikes and work-to-rule actions, designed to keep management under pressure without the financial toll of a prolonged full strike.
This decision followed a three-day round of negotiations with management that ended on Wednesday without reaching a resolution. The strike has persisted without an agreement, prompting the shift to this new strategy.
Financial Impact on Workers
The prolonged strike has had a significant financial impact on union members, with losses estimated between 4 to 5 million won ($2,933-$3,667) per person, depending on their job role. The financial strain has influenced the union’s decision to adopt a less financially burdensome approach.
Union’s New Actions and Merger Plans
In a bid to escalate their demands, the union held a press conference on Thursday outside the residence of Chairman Lee Jae-yong in Seoul. They called on him to propose solutions to resolve the conflict. Additionally, NSELU, which comprises 36,341 members—about 29 percent of Samsung Electronics’ total workforce—is set to merge with another union representing office staff on Monday.
The National Samsung Electronics Union (NSEU), representing roughly 24 percent of the workforce, also announced its plan to adopt a long-term strategy. In a YouTube stream, NSEU highlighted the need to balance continued pressure on management with minimizing financial impacts on its members.
Ongoing Negotiations
The strike’s continuation is a result of failed negotiations with Samsung’s management. The union is seeking a 5.6 percent wage increase, while management has offered 5.1 percent along with an additional 2 million points for use on the company’s internal shopping platform.
Historical Context and Production Concerns
This strike is notable as the first full-scale walkout in Samsung Electronics’ history. Despite intense negotiations from July 29 to 31, no agreement was reached, raising concerns about potential production disruptions at Samsung’s chip manufacturing facilities. However, during its earnings call on July 31, Samsung reported no significant production issues.
Future Prospects
With the union now focusing on intermittent strikes and work-to-rule actions, they aim to achieve their demands while mitigating the economic impact on their members. This strategic shift reflects a calculated move to maintain pressure on Samsung’s management without the burden of a prolonged strike.
Next Steps for the Union
The upcoming merger of NSELU with another union is expected to strengthen the labor force’s negotiating power. As they enter this new phase, the union’s efforts underscore the ongoing struggle for better wages and benefits and highlight the broader implications for labor relations at Samsung Electronics.
