Samsung might face first labor strike in 50 years as wage talks falls through

In 50 years, Samsung hasn't had any problems with its labor unions. However, as wage talks fail between the company and the unions, it might happen.

Is Samsung going to face a huge labor strike?

Samsung Electronics versus Labor Unions?

File photo: Samsung Galaxy Z Fold3 5G and Z Flip3 5G

Negotiations have been going back and forth for months now between Samsung and representatives of the labor union. The latter already filed for disputes with South Korea's National Relations Commission under the Labor Ministry.

Samsung has 10 days to reach an agreement with the union. Failure to do so will result in a strike and a pause in several of Samsung's businesses including but not limited to the manufacturing of semiconductor chips and other electronics.

Samsung is caught between a rock and a hard place. It is already facing problems with the semiconductor shortage and now a labor dispute. The main party against the South Korean giant is the National Samsung Electronics Labor Union.

The union has 4,500 members. It was in negotiations with Samsung since October 2021. With demands for a wage increase, COVID-19 compensation, and special leave options all falling on deaf ears, it was a first to stand up against Samsung.

Samsung proposed a wage hike of up to 7.5 percent, including a 4.5 percent basic pay increase, in a draft deal in March, but left out the labor unions' other demands.

What do you guys think?

Source: Korea Herald