Samsung is facing a potential crisis as the National Samsung Electronics Union has announced a strike for June 7th. The union, representing 20% of Samsung’s workforce, is demanding higher salaries, bonuses linked to company performance, and additional annual leave.
The strike, the first of its kind for Samsung, has the potential to disrupt production of smartphones, semiconductors, and other electronic devices. The union’s members work in Samsung’s smartphone and semiconductor facilities, and analysts warn that disruptions in operations could have a major negative impact on the entire semiconductor and electronics value chain, leading to potential shortages and price hikes.
Samsung is one of the world’s top producers of smartphones and chips, and works with multiple brands from Xiaomi to Nvidia to Volkswagen. It is expected to launch the next Z Fold and Z Flip devices, along with the Galaxy Ring smart ring, in July.
The National Samsung Electronics Union was formed in 2019 after strong resistance from the company’s late founder, following political changes in South Korea and legal action against Samsung’s Lee Jae-yong. The union’s announcement of the strike follows a series of protests at Samsung offices.
Samsung has stated that discussions with the union are ongoing. However, not all unions are in favor of the action, and some smaller unions will not participate.
The potential impact of the strike on Samsung’s upcoming product releases is unclear. The company has not dealt with a situation like this in the past.
