Historic Samsung Worker Strike Makes Headlines | Global News

In a historic move, workers at Samsung, the powerhouse conglomerate in South Korea, went on strike for the first time on Friday. The strike, led by employees in Samsung’s chip division, was a result of failed negotiations over wage increases and bonuses.

The Nationwide Samsung Electronics Union, representing 28,000 members, organized the strike after multiple rounds of talks with the company broke down. The union, which accounts for about one-fifth of Samsung’s global workforce, reported that nearly 75% of its members voted in favor of the strike back in April.

Despite the work stoppage, Samsung’s manufacturing output was not expected to be significantly impacted. The strike was strategically planned to coincide with a national holiday and the weekend, minimizing disruption to operations. However, the timing was less than ideal for Samsung as it strives to reassure investors and clients about its chip business capabilities amidst the booming artificial intelligence market.

Samsung, a long-standing leader in memory chip production, has faced challenges in recent quarters, with four consecutive quarters of losses leading to its weakest earnings in over a decade. The company’s local rival, SK Hynix, has surged ahead in the market for high-bandwidth memory chips, capitalizing on the growing demand from companies developing AI systems.

As the strike unfolded, workers gathered in front of Samsung’s headquarters in Seoul, playing protest songs over loudspeakers. The outcome of the strike remains uncertain, but it underscores the growing tensions within Samsung as it navigates the competitive landscape of the tech industry.