Samsung Union Workers On Indefinite Strike

(RTTNews) - Samsung Electronics Co.'s workers union have extended their three-day general strike indefinitely over pay and benefits after the South Korean tech giant's executives failed to show any intention to hold fresh talks, reports said.

The National Samsung Electronics Union or NSEU, with about 30,000 members, had begun their strike on Monday seeking better wage options and bonuses based on the company's earnings as they couldn't reach agreement with the firm even after many rounds of discussions.

The ongoing strike is feared to affect the crucial chip production of Samsung Electronics, the world's largest maker of memory chips, televisions and smartphones.

Meanwhile, the company reportedly said it will ensure no disruptions to production and that it was committed to engaging in good faith negotiations with the union.

As per the reports, the union is demanding a 3.5 percent increase in members' base wage, improved transparency in pay, as well as compensation relating to the economic losses of union members who participated in the strike.

The labor union said its members are absolutely prohibited from going to work until executive instructions are given.

Earlier, on June 7, Samsung union workers had gone on a one-day strike as an initial protest, the first-ever strike in the company's 55-year history.

All these developments are in the midst of the South Korean major's ongoing efforts to strengthen its semiconductor business and its competitiveness amid surge in chip demand, despite uncertain global business environment.

The company is boosting its semiconductor manufacturing and research and development activities, mainly in the United States, to meet the skyrocketing demand.

Last week, Samsung Electronics' shares had gained significantly after it issued a highly positive second-quarter outlook, expecting operating profit of about 10.40 trillion Korean won, compared to 0.67 trillion won reported last year, and about 6.61 trillion won in the preceding first quarter.

The company projects quarterly consolidated sales will increase 23.31 percent to about 74.00 trillion won from 60.01 trillion won last year.

This was after reporting significantly higher first-quarter net income and operating income mainly as the Memory Business returned to profit by addressing demand for high value-added products. Sales also climbed on the back of strong sales of flagship Galaxy S24 smartphones and higher prices for memory semiconductors.