Samsung Electronics is on the verge of its first labour strike in half a century, as wage talks with unions have collapsed.
After months of negotiations, the labour union filed for an arbitration to Korea’s National Labor Relations Commission over the weekend, giving Samsung to reach an agreement within 10 days, or strike action will take place.
Obviously, given the supply chain crunch already impacting the tech industry, any factory pause of production would be dire.
“Although (the union) has been through the 15 rounds of talks (with Samsung), the management had unilaterally delayed the progress in negotiation in a deceitful manner,” National Samsung Electronics Labor Union, said in a statement.
“We have come to file an arbitration with the NLRC based on our observation that our talks will no longer proceed. Our future direction will depend on the willingness of Samsung to negotiate.”
The workers are requesting a wake hike, COVID-19 compensation, and special leave options. In addition they requested a bonus scheme that amounts of 25 per cent of Samsung’s annual operating profit.
