Samsung workers approve strike plan amid bonus dispute
Unionised workers at Samsung Electronics in South Korea have voted to authorise a strike, escalating a dispute over bonuses and raising concerns about potential disruption to global semiconductor supply, according to Reuters.
A total of 93% of the 66,019 employees who participated in the vote supported strike action, Reuters reports. The union represents nearly 90,000 workers, accounting for more than 70% of Samsung’s workforce in South Korea.
If no agreement is reached, the union plans to stage a rally on April 23, followed by an 18-day strike starting May 21.
The dispute centres on compensation, with union representatives calling for the removal of a bonus cap and for bonuses to be linked to operating profit. Samsung has argued that lifting the cap would make it more difficult to fund future investments and shareholder returns in what it describes as a capital-intensive and cyclical industry, Reuters reports.
Samsung said it would “make its best efforts” to conclude wage negotiations amicably, according to a company statement cited by Reuters.
The vote follows the collapse of wage negotiations that began late last year. Reuters reports that dissatisfaction over pay differences compared with competitors, including SK Hynix, has contributed to increased union membership.
A potential strike could have broader implications for the semiconductor industry, as Samsung produces all of its DRAM chips and around two-thirds of its NAND flash memory in South Korea, according to data from market research firm Counterpoint Research.
