Samsung Workers Union Launches Three-Day Strike in South Korea

Despite the potential for continued strikes, analysts believe the impact on production will be minimal due to automation. The strike highlights declining staff loyalty within the tech giant.

A workers' union at Samsung Electronics in South Korea is set to stage a three-day strike from Monday, 8 July, warning it could escalate further action against the conglomerate at a later date.

The National Samsung Electronics Union (NSEU), with around 28,000 members constituting over a fifth of the company's workforce, is demanding improvements in the performance-based bonus system and an extra day of annual leave. As of Monday morning, a poll indicated about 8,100 members planned to participate in the strike.

Lee Hyun-kuk, a senior union leader, indicated in a recent YouTube broadcast that another round of strikes could follow if the workers' demands are not met after the three-day stoppage. A rally is scheduled to occur near Samsung's headquarters in Hwaseong, south of Seoul, on Monday morning.

Analysts, however, predict the strike will have minimal impact on chip output, given the heavy automation in the world's largest memory chipmaker's production processes. This strike, following a walkout last month, underscores decreasing staff loyalty, an issue for Samsung as it faces stiff competition in the AI chip market. Despite an estimated significant rise in second-quarter profits driven by rebounding semiconductor prices, Samsung's share price still lags behind its competitor SK Hynix.