Samsung faces major strike after pay talks with union falls apart

admin — Wed, 20 May 2026 07:46:00 +0000

Choi Seung-ho, head of Samsung Electronics union, bows after a mediation session at the National Labor Relations Commission in Sejong, South Korea, on May 20, 2026. Photo: Yonhap via Reuters

Management and union leaders at Samsung Electronics failed to reach a last-minute deal over wages on Wednesday (May 20, 2026), raising prospects for a strike at the South Korean electronics giant that could rattle global semiconductor supplies and the country’s trade-dependent economy.

Government officials have threatened to invoke rarely used emergency powers to force a settlement at Samsung, where the union, which represents about 74,000 workers, says the company has failed to offer adequate compensation despite its soaring profits fuelled by the global boom in artificial intelligence.

After the latest round of talks ended without a breakthrough on Wednesday (May 20, 2026), union leader Choi Seung-ho told reporters that unionised workers will begin an 18-day strike from Thursday (May 21, 2026).

Both the union and the management held each other responsible for a failure to reach a deal. Mr. Choi accused management of refusing to accept a government-mediated proposal whose details he refused to disclose. Management accused the union of calling for excessive compensation packages for workers at loss-making units.

The two sides said they will continue efforts to reach a deal, but it’s unclear if they could sit down for talks again later in the day.

Samsung is a major manufacturer of smartphones, consumer electronics and semiconductors.

The company and its cross-town rival, SK Hynix, together produce about two-thirds of the world’s memory chips, which are seeing surging demand driven by AI. Samsung said last month its operating profit for the January-March quarter jumped eightfold to a record 57.2 trillion won ($38 billion).

Union leaders have demanded a compensation structure in which Samsung would commit to spend 15% of its annual operating profit on employee bonuses and scrap bonus caps, which are currently set at 50% of annual salaries. Management says the demands are excessive, citing the highly cyclical nature of the semiconductor business.

Prime Minister Kim Min-seok, the government’s No. 2 official after President Lee Jae Myung, said in a televised statement on Sunday (May 17, 2026) that the strike could cause up to 100 trillion won ($66 billion) in economic damage by disrupting Samsung’s highly complex semiconductor manufacturing processes.

A local court on Monday (May 18, 2026) partially granted the company’s request for an injunction against the planned strike, ruling that the union must maintain certain staffing levels to prevent damage to facilities and materials and ensure safe operations. The Suwon District Court also barred unionists from occupying key facilities and offices.

Published – May 20, 2026 12:56 pm IST

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Samsung union in South Korea says will strike indefinitely

admin — Wed, 10 Jul 2024 03:52:45 +0000

Members of the National Samsung Electronics Union gather during a rally as they began a three-day general strike outside of Samsung Electronics’ Hwaseong campus in Hwaseong, South Korea, Monday, July 8, 2024. (Hong Ki-won/Yonhap via AP)
| Photo Credit: AP

A workers’ union at tech giant Samsung Electronics in South Korea said on Wednesday it would continue to strike indefinitely, stepping up its campaign for better pay and benefits.

The National Samsung Electronics Union (NSEU), whose roughly 30,000 members make up almost a quarter of the firm’s South Korean workforce, said it has decided to continue striking because management has shown no indication of holding talks after a strike that started on Monday.

“We haven’t spoken to management since we started the strike on Monday,” said Lee Hyun-kuk, the union’s vice president.

The union said it would extend the strike initially planned to last three days through Wednesday. Lee told Reuters that the union found its strike has disrupted production on certain chip lines such as with equipment running more slowly.

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Samsung previously said the strike has caused no disruption to production. It did not immediately respond to a request for comment on Wednesday.

The union is becoming more vocal and seeking to be treated as an equal partner, adding to challenges at the world’s biggest memory chipmaker which is struggling to navigate competition in chips used for artificial intelligence (AI) applications.

Lee said about 6,500 workers have been participating in the strike and that the union will encourage more members to join.

Union officials have disputed reports of low participation, telling Reuters that the five-year-old body did not have enough time to educate members about the labour issues. The union held a training session on Tuesday and will conduct another on Wednesday.

Analysts said it would be difficult to verify whether the strike has disrupted production unless the union provides details of wafers and processes.

The union said it has revised demands to include a 3.5% increase in base salary and, instead of an extra day’s annual leave, a day off to mark the union’s founding. Lee said the management previously offered a 3% rise in base salary but the union wants 3.5% to better reflect inflation.

Samsung’s share price was down 0.1% versus a 0.2% decline in the benchmark KOSPI as at 0139 GMT.

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Samsung faces major strike after pay talks with union falls apart

Samsung union in South Korea says will strike indefinitely