Samsung Electronics could face the first strike in 50 years after the collapse of wage talks with the National Samsung Electronics Labor Union.
After several months of negotiations, union representatives filed a lawsuit with the National Labor Relations Commission of South Korea, which is a government agency under the Ministry of Labor. The move gives Samsung 10 days (from Feb. 4) to reach an agreement, failure to comply with which will lead to a strike and shutdown of several critical Samsung divisions, including semiconductors.
The South Korean company has found itself in a quandary as it has already been hit hard by semiconductor shortages, leading to inventory shortages and delivery delays. In addition, the launch of the flagship Galaxy S22 series has been delayed by a few weeks.
“Despite the union’s 15 rounds of negotiations with Samsung, management unilaterally fraudulently delayed the negotiations,” the National Samsung Electronics Labor Union said in a statement.
The Samsung union currently has 4,500 members, and negotiations began in October. During the talks, demands for wage increases, compensation due to COVID-19 and special leave options were voiced for the first time, but they all fell on deaf ears.
“We went to court after we realized that negotiations would no longer continue. Our future direction will depend on Samsung’s willingness to negotiate,” the National Samsung Electronics Labor Union added.
Source: ixbt
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