Members of the National Samsung Electronics Union hold a rally as they begin a three-day general strike outside the company’s foundry and semiconductor plant in Hwaseong on July 8, 2024.
Jung Yeon-je | Afp | Getty Images
Workers at South Korean tech giant Samsung Electronics will extend an unprecedented strike over pay and benefits “indefinitely,” the union said in a statement Wednesday.
The union’s demands include a 3.5% increase in members’ basic wages, better pay transparency, and compensation related to the economic losses of members participating in the strike.
The National Samsung Electronics Union, which has about 30,000 members, has started a three-day general strike on Monday, after the two sides disagreed on the rate of wage increases, holiday system and bonuses after several discussions, according to local media reports.
This is the first strike by a labor union in the entire 55-year history of Samsung Electronics, according to local media.
“Don’t be discouraged,” the NSEU statement read, according to a Google translation.
“It is absolutely forbidden to work until executive instructions are given,” the union asked its members.
Samsung, which told local media on Tuesday that its chip production was not interrupted during the first two days of the strike, said on Wednesday it “will ensure no disruption to the production line” with the extension of the strike.
“The company remains committed to engaging in negotiations in good faith with the union,” Samsung said.
The NSEU, which extended the strike, said Samsung management was unwilling to hold talks, insisting the strike was disrupting chip production.
Samsung Electronics is the world’s largest manufacturer of memory chips, commonly found in consumer devices such as smartphones and laptops.
Samsung Electronics shares were down 0.34% on Wednesday morning.
Separately, South Korean cars Hyundai Motor District and unions reached a temporary wage agreement on Monday, averting strikes planned for Wednesday and Thursday, local news agency Yonhap reported.
The agreement includes an increase of 111,200-Korea ($81) in monthly basic salary, as well as bonuses and company shares.
– CNBC’s Lim Hui Jie contributed to this report.
