The Samsung Electronics Union has launched an indefinite strike, specifically targeting the company’s most advanced AI chip factories. This comes after an impasse in wage negotiations and demands from the union for pay rises, extra days off and reform of the bonus system.
Samsung Electronics Union’s indefinite strike
Samsung Electronics Union’s indefinite strike began on July 8 and aims to disrupt AI chip production at Samsung. The strike was called after the company’s management refused to participate in discussions during a previous three-day strike. The strike has already slowed production on some chip production lines, according to statements by Lee Hyun-kuk, vice-chairman of the Samsung Electronics National Employees Union (NSEU).
The union’s demands
Samsung Electronics Union employees are demanding a 3.5% pay rise, an extra day off to celebrate the union’s anniversary, and a reform of the bonus system to establish equality between senior management and rank-and-file employees. Samsung management proposed a 3% pay rise and offered performance-related bonuses, but this did not satisfy the employees.
Potential impact on chip production
The strike could have a significant impact on Samsung’s AI chip production, which is already struggling to remain competitive in the market. Samsung is the world’s fourth-largest producer of smartphone chips and has seen its market share remain stable recently. However, the strike could disrupt production and affect chip delivery times, which could have repercussions for the company‘s customers.
