Samsung Electronics union continues strike after talks with management collapse

By Candice Kim Posted : August 1, 2024, 14:47 Updated : August 1, 2024, 14:47
Samsung Electronics union members rally at Giheung campus, Yongin, July 22, 2024. Yonhap
SEOUL, August 1 (AJU PRESS) – Negotiations between Samsung Electronics and its striking labor union ended without agreement Wednesday, dampening hopes of ending the more than 20-day-long walkout at Korea’s largest company.

During the three-day talks, the two sides narrowed differences on some issues but failed to reach a final compromise, sources said. 

The management reportedly offered paid union activity hours, leisure points for employees and a reduction in mandatory annual leave usage. 

The National Samsung Electronics Labor Union (NSELU) demanded additional benefits, including compensation for strike-related losses and extra wage increases for members.

Talks broke down after the union requested additional points for Samsung's employee product purchase platform, which the company viewed as potentially violating the "no work, no pay" principle.

The largest labor union at Samsung launched the strike on July 8, demanding higher pay, improved bonus systems and other benefits. 

Following the collapse of the negotiations, the union held a press conference outside Chairman Lee Jae-yong's residence in Seoul on Thursday, calling on him to come up with measures to resolve the dispute.

The NSELU vowed to continue its strike. However, its status as the representative bargaining union expires next Monday, after which individual unions could request separate negotiations, potentially stripping the NSELU of its legal right to strike.

Samsung has five labor unions, with some expressing criticism or limited support for the NSELU's actions.

The prolonged strike has resulted in significant wage losses for participating members, estimated at 4-5 million won ($2,933-$3,667) per person, depending on their position.

The company expressed disappointment at the talks' failure but committed to ongoing dialogue. During its conference call on second-quarter earnings Wednesday, Samsung assured that the strike has not affected its output and pledged to minimize disruptions to management and production.

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