Samsung workers went on strike for the first time in the company’s history, particularly impacting its chip division. The strike, scheduled for a day, was a result of failed negotiations over wage increases and bonuses. The Nationwide Samsung Electronics Union, representing about 28,000 workers globally, reported nearly 75% in favor of the strike.
Lee Hyun Kuk, vice president of the union, stated that the company did not value the union as a negotiating partner, leading to the breakdown in talks. Samsung Electronics, while trying to reach an agreement, refrained from commenting further on the strike.
Despite the strike, Samsung’s manufacturing output was expected to remain unaffected, strategically timed between a national holiday and the weekend. It was unclear how many workers participated, but a small rally outside Samsung’s Seoul headquarters highlighted the discontent.
The strike coincided with Samsung’s efforts to regain competitiveness in memory chip production, crucial for advanced artificial intelligence systems. Samsung, historically dominant in memory chips, faced challenges after reporting losses for four consecutive quarters. SK Hynix, a local competitor, took the lead in high-bandwidth memory chips, aligning with the growing demand from AI developers like Nvidia.
The strike underscored internal tensions within Samsung, impacting its strategic efforts to reassure clients and investors about its chip business amidst the AI boom.