Samsung Electronics Union Aiming for 'Production Disruption' Becomes a Variable Amid 'Semiconductor Boom' (Comprehensive)

Jeonsamno to Hold Total Strike for Three Days Starting the 8th
Strong Semiconductor Boom Expected Due to 'Surprise Earnings'
Second Strike Also Announced... Production Disruptions Feared This Time
Labor-Management Negotiations Likely to Remain at an Impasse for Now

Samsung Electronics recorded an 'earnings surprise' in the second quarter of this year, raising industry expectations about whether it can enter a semiconductor boom phase. However, concerns are mounting inside and outside the company as the largest labor union at Samsung Electronics, the National Samsung Electronics Labor Union (Jeonsamno), began a three-day strike starting on the 8th, potentially becoming a variable.

On the 8th, when the National Samsung Electronics Labor Union, the largest union of Samsung Electronics, declared a three-day general strike, union members shouted slogans at the general strike rally held in front of the main gate of Samsung Electronics Hwaseong Plant in Hwaseong, Gyeonggi-do. Photo by Yongjun Cho jun21@

According to the industry on the 8th, following Samsung Electronics' earnings announcement on the 5th, it is analyzed that the Device Solutions (DS) division, which is responsible for Samsung's semiconductor business, earned around 6 trillion won, about 60% of the total operating profit. Samsung Electronics announced and paid the first half of this year's DS division Target Achievement Incentive (TAI) at 37.5 to 75% of the monthly base salary on the same day. Earlier, Samsung Electronics disclosed on the 5th that its second-quarter operating profit was preliminarily estimated at 10.4 trillion won.

Although a positive atmosphere has been created, there is still a sense of crisis surrounding Samsung Electronics. Jeonsamno, formed mainly by DS division employees, began its first-ever strike on this day. Samsung Electronics had been negotiating wages with the union but ultimately rejected the Central Labor Relations Commission's post-mediation proposal on the 1st and declared a general strike, also aiming for 'production disruption.'

Jeonsamno announced at the general strike rally held in front of Samsung Electronics' Hwaseong plant on the same day that 6,540 people participated in the strike. The union claims that more than 5,000 participants are from semiconductor equipment, manufacturing, and development (process) job categories.

Regardless of the strike, the semiconductor production lines are reportedly operating smoothly on a 24-hour, three-shift basis. The DS division has about 70,000 employees. Previously, Jeonsamno declared a strike on May 29 and initiated its first annual leave protest on June 7, but since it was during a bridge holiday, there was reportedly no significant impact, including production disruption.

However, this time the union plans a general strike until the 10th, and if labor-management negotiations do not progress constructively during this period, they intend to start a second strike from the 15th, raising concerns about production disruptions. Samsung Electronics stated, "We have thoroughly prepared to prevent production disruptions due to the strike."

There is also speculation that labor-management negotiations will remain at an impasse for the time being. Although the parties had reached an agreement stage after post-mediation by the Central Labor Relations Commission, the union's declaration of a general strike broke the final agreement, and it appears difficult for either side to present an improved proposal thereafter.