Samsung faces uncharted territory in South Korea as union calls indefinite strike

The National Samsung Electronics Union in South Korea called for an indefinite strike on Wednesday to intensify its campaign against the company for better wages and benefits. Using estimates by the union's vice president, Lee Hyun-kuk, around 6,500 workers joined the strike that began on Monday, while the company has maintained that the first three days of striking did not cause any disturbance. However, the union is adamant about disturbance to the production on some of the chip lines such as with equipment running more slowly.

"Samsung Electronics will ensure no disruptions occur in the production lines. The company remains committed to engaging in good faith negotiations with the union," the company said in a statement.

The union, which represents about 30,000 members—nearly a quarter of Samsung's South Korea workforce—will extend a strike originally planned for three days until Wednesday after management failed to give any sign it would negotiate with them.

Add WION as a Preferred Source

"We haven't spoken to management since we started the strike on Monday," said Lee.

The union wants to be treated as a partner on equal terms with managementin a bid to push further an already beleaguered world's biggest memory chipmaker fighting razor-thin competition in AI chips.

However, the union officials have also denied reports about the low turnout, arguing that the union, which is only five years old, did not have adequate time to train its members on labour matters. Some training took place on Tuesday, and another one is scheduled for Wednesday to educate the members.

The NSEU has revised its demands and is holding out for a 3.5 per cent basic salary increase and a day off to celebrate the founding of the union, having earlier dropped the extra day's annual leave. Management earlier offered to raise the salary increase by 3 per cent, but the union disagrees that 3.5 per cent is needed to accurately reflect the real figure for inflation.

Analysts said it would be difficult to gauge the extent of damage to production from the strike without further clarity from the union related to wafers and processes.

Shares of Samsung shed 0.3 per cent in early trade, while the benchmark KOSPI index was little changed.