The largest labor union at Samsung Electronics in South Korea declared an indefinite strike after a three-day walkout failed to resolve a dispute over pay and bonuses. The announcement followed a strike involving 6,000 workers, mainly from the semiconductor division.

Samsung Workers Launch Indefinite Strike Over Pay Dispute
This marks the most significant labor action in the 55-year history of the smartphone and chipmaking giant.

The National Samsung Electronics Union (NSEU), representing 31,000 members or nearly a quarter of the company’s workforce, began the strike on July 10, marking the largest labor action in Samsung’s 55-year history. The union stated that Samsung will “regret this decision” to not negotiate and expressed confidence in their eventual victory.

Samsung Electronics stated its commitment to good faith negotiations and ensuring no disruptions in production. However, union leader Son Woomok warned that restoring facilities shut down by the strike would take time.

The dispute surfaced in June when the union staged a one-day strike over a transparent pay structure and better working conditions. Despite recent challenges, including a chip shortage during the pandemic and falling demand for electronics, Samsung is optimistic about a resurgence in demand due to the AI boom and new product rollouts.

Workers demand that this optimism be reflected in their pay, criticizing the company’s consistent crisis rhetoric despite high operating profits. Union leader Woomok highlighted employees’ growing dissatisfaction with the lack of performance bonus increases.