A First in Samsung’s 55-Year History: It’s about to get messy!
Samsung faced a first in its 55-year history. The strike move from the Samsung Electronics Union shook the company. Here are the details!
The National Samsung Electronics Union (NSEU), a labor union owned by Samsung Electronics, has announced that it will hold its first strike in 55 years after management and the union failed to reach an agreement on salary increases.
The union has called on all employees who are members to take a paid day off on June 7. During this one-day leave, they announced that they will organize a protest. So what does this mean for Samsung?
Samsung’s First Strike Will Make a Splash
The 28,000-member union says it is in ongoing negotiations with Samsung, which is likely to suffer. At a live-streamed press conference, a representative of the union said:
“We can no longer stand the persecution of labor unions. We are declaring a strike against the company’s neglect of workers.”
The union has demanded a 6.5% wage increase plus a bonus pegged to company earnings. However, Samsung Electronics has been in negotiations with the union since the beginning of the year but has yet to reach an agreement, prompting the union to strike.
Analysts said that this strike would not be good for the tech giant and that the global electronics supply chain could be affected. Even the union’s announcement caused a 2% drop in the company’s shares.
