On July 10th, Bloomberg reported that due to "the management's lack of willingness to engage in dialogue", the largest labor union of Samsung Electronics, the "Korean Federation of Samsung Electronics Trade Unions", announced today that they will go on an indefinite strike.

The Korean Federation of Samsung Electronics Trade Unions has over 30,000 members, accounting for around 24% of Samsung's total workforce in South Korea.

Starting from July 8th, over 6,500 Samsung Electronics workers have been on strike, demanding higher wages and adjustments to the performance-based pay system. The original strike was planned to last three days; on the 9th, the union warned that if the management fails to make an offer by Wednesday, they will proceed with an indefinite strike.

As previously reported by IT Home, the key points of dispute between the workers and Samsung are:

Inadequate wage increase: The Korean Federation of Samsung Electronics Trade Unions believes the 5.1% raise is too low and is demanding an increase to 6.5%.
 

Performance-based bonus system: The union is asking Samsung Electronics to adjust the calculation method for performance-based bonuses, changing from the current economic value-added (net operating profit after tax minus capital input) to the same method used by SK Hynix and LG Electronics, which is based on operating profit.
 

According to a report by Yonhap News Agency yesterday, Samsung has stated that the current market conditions do not support meeting these demands, and that factory production has not been halted or disrupted so far.

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Source: IT Home

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