Samsung Workers Now Declare a Surprising Strike For Better Pay

July 11, 2024

Samsung workers now declare a surprising strike for better pay and leave policies in South Korea after a three-day walkout.

The largest labor union at Samsung Electronics in South Korea has declared an indefinite strike after a three-day walkout failed to yield any ground in a tense dispute between workers and the tech giant over pay and bonuses.

Earlier this week, there was another strike involving 6,000 workers, mainly from the company’s semiconductor division, according to the union.

The National Samsung Electronics Union (NSEU) said that its 31,000 members — representing a nearly quarter of the company’s total workforce in the country — would launch an indefinite strike from July 10 — the largest labor action in the smartphone and chipmaking giant’s 55-year history.

The company will “regret this decision” of not coming to the negotiation table, the union said in a statement posted on its official website.

The longer the strike lasts, the more likely it is that management will “kneel down” and hold a dialogue, the NSEU said, adding that they’re “confident of victory.”

Samsung Electronics said in a statement Wednesday the company “remains committed to engaging in good faith negotiations with the union,” adding that it will “ensure no disruptions occur in the production lines.”

However, Son Woomok, the union leader, told CNN Monday that “it will take a long time to restore facilities that are shut down due to a strike.”

The dispute first came to attention in June, when the union staged a one-day strike following failed talks over transparent pay structure and better working conditions.

The world’s biggest memory chipmaker has had a rough few years.

A historic shortage of computer chips during the Covid pandemic was followed by falling demand last year as consumer appetite for electronics remained weak because of global economic uncertainty.

But things are looking up for the company because of the AI boom, reports CNN.

The workers want this optimism reflected in their pay.

“The company is not treating the employees properly,” said Woomok on Monday.

“Even though the operating profit is high, the company has been saying it’s in a crisis situation for over 10 years, and employees are increasingly dissatisfied with the lack of performance bonus increases,” he added.

Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia

Other Economy News Today

A massive manufacturer is now laying off hundreds in Illinois as the company shifts its production to a new facility in Mexico.

John Deere announced it will lay off about 600 employees across three US factories as the Illinois-based company shifts production to a newly planned facility in Ramos, Mexico.

Effective August 30, about 310 employees will be laid off at two Iowa-based plants in Dubuque and Davenport, as well as 280 from a factory in East Moline, Illinois.

In total, the three factories have roughly 4,175 production and maintenance employees.

The Illinois factory primarily produces harvesting equipment such as combines, while the two Iowa factories manufacture construction and forestry equipment.

The decision is the latest in a string of production layoffs by the farm-equipment manufacturer over the past year.

Deere has sought to reposition itself as a technology company amid falling agricultural revenue in the United States.

“These changes are being made due to reduced demand for the products produced at these facilities,” the company told CNN in a statement Friday.

“To better position Deere to meet future demand, we continue to take proactive steps to reduce production and inventory.”

The company has reported slumping year-over-year revenue after announcing a net income of more than $10.16 billion in 2023.

In a May earnings call, executives forecast Deere’s 2024 income will be about $7 billion, citing higher production costs, lower shipment volumes and volatile weather that has made customers more cautious in their purchasing decisions.

“We do expect incremental demand decline in the back half of 2024,” Josh Beal, the company’s director of investor relations, said in the May earnings call.

“Notably, our production volumes will decline more than demand in the back half as we’re taking proactive steps to drive down field inventories.

This is true for all of our major markets, South America, Europe, and also now for North America large tractors.

We believe this approach best positions us to build the retail demand in 2025.”

For more layoff news and updates like this, opt-in for push notifications.

Also Read: Retirees Will Now Receive More Money For Social Security

Market News Published Daily 📰

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Our readers can now donate $3 per month to support independent journalism.

For daily news and updates on your favorite stories, opt-in for push notifications.

Follow Frank Nez on X (Twitter), Instagram, or Facebook.

More Market News 📰