Samsung employees may be on strike if management fails on salary hike

Last year in June 2021, for the first time in history, Samsung Display employees went on strike against the firm. They went on strike after negotiations with the management on wage hikes failed.

And once again, the South Koren tech giant Samsung Electronics could see its first labor strike in five decades after wage negotiations with unions failed.

According to recent info by KoreanMedia, despite months of negotiations, unionized workers’ representatives filed for mediation at the Korea National Labor Relations Commission, a government agency under the Ministry of Labor.

Samsung Electronics strike on collapsed wage negotiations

The move could lead Samsung and its four unions to a wage settlement within 10 days, which could lead to a strike and shutdown of Samsung businesses ranging from semiconductor chips to electronic gadgets and home appliances. Negotiations can be extended by an additional 10 days by mutual consent.

However, appeals by trade unions for a pay rise, COVID-19 compensation and special leave fell on deaf ears. In a draft agreement proposed in March, Samsung’s internal independent council approved a pay rise of up to 7.5 percent, including a 4.5 percent base pay increase and the company has 114,000 employees.

The draft, which called on unions to raise wages by 10 million won ($8,350) per worker, won $12.9 trillion won in 2021, including a 25 percent bonus on his annual operating profit. In January, the council rejected a proposal for a pay rise.

Earning record revenue in 2021, Samsung has announced plans to offer employees an incentive of up to 200 percent of their monthly base salary, while memory chip operations will be allowed up to 500 percent.