Samsung Electronics may have to face a challenge on the company’s front. The company may have to see a labor strike for the first time in 50 years. Wage negotiations with labor unions have broken down, due to which such speculations are being made. After months of negotiations, labor union representatives have asked Korea’s National Labor Relations Commission (NLRC) to mediate. It is a government agency under the Ministry of Labor. Samsung has 10 days to reach an agreement. If this is not followed, many of Samsung’s businesses such as semiconductor chips and electronics may go on strike.
The Korea Herald according toThese circumstances have put South Korean Samsung in a tough spot. The company is already affected by semiconductor shortages. This has resulted in delays in inventory and shipping. For example, the delivery of the company’s upcoming Galaxy S22 series has been pushed back by a few weeks.
The National Samsung Electronics Labor Union (NSELU) has said in a statement that so far 15 rounds of talks (with Samsung) have taken place. Management has delayed progress by negotiating unilaterally.
NSELU currently has 4500 members. Talks between NSELU and Samsung started in October. Labor unions are negotiating issues such as wage hikes, COVID-19 compensation and special leave options. Samsung had suggested a wage hike of up to 7.5 per cent in March under a draft agreement. There was a basic pay hike of 4.5 per cent. But the labor unions did not accept it.
NSELU has said that it is filing arbitration with the National Labor Relations Commission as talks between it and Samsung will no longer proceed. The direction of talks in the future will depend on Samsung’s willingness.
If Samsung faces a labor strike, it will affect its upcoming launch as well. The deliveries of the Galaxy S22 series have already gone ahead. Tipster and YouTuber Jon Prosser has claimed this in his tweet. The pre-bookings for the flagship device will start from February 9, the day of the launch event. In this, Samsung Galaxy S22 Ultra smartphones will be available for purchase from February 25, while the availability of Samsung Galaxy S22 and Samsung Galaxy S22+ smartphones has been further extended to March 11.