A Samsung workers union has, this week, warned that its members may stage a mass walkout over a wage dispute.
This would be the South Korean tech giant’s first ever strike since it was founded in 1969.
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The warning comes during challenging economic times for the company, after recently announcing its operating profit had dropped to its lowest level since 2009 in the first quarter.
The National Samsung Electronic Union (NSEU), an influential union representing around 10,000 staff, says that Samsung management has cut the union out of all wage negotiations.
Last month, Samsung agreed to increase wages by around 4%, according to the NSEU. The union is asking the tech giant for a 6% increase for its members.
On Thursday (5 May), the NSEU hosted a press conference outside Samsung’s buildings in Seoul. It was there that members of the union demanded that Samsung’s Chairman Lee Jae-Yong join the discussions.
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By GlobalDataAccording to Lee Hyun-Kuk, a union representative, the “attitude” of Jae-Yong will decide whether they take the union on strike.
Hyun-Kuk said: “It depends on the attitude of Chairman Lee Jae-Yong. We sincerely ask him to come to the table for talks.”
A Samsung spokesperson released a statement saying “the company has diligently followed all relevant and related procedures and will continue to hold discussions with the union.’”
The company has felt the pressure on finances from decreasing demand for memory chips and a fall in overall prices.
Up until recently, Samsung’s memory chips had been a driving profit maker for the company.
GlobalData is the parent company of Verdict and its sister publications.
