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Samsung Workers To Launch Indefinite Strike for Better Pay and Benefits 

Samsung Electronics’ shares dropped by 0.5% after its workers’ union announced an indefinite strike demanding better pay and benefits.

The National Samsung Electronics Union (NSEU), representing around 30,000 workers at South Korean tech giant Samsung Electronics, has called for an indefinite strike as part of its ongoing campaign for better pay and benefits.

The announcement came at the end of a three-day general strike held by the NSEU. 

The union, which represents nearly a quarter of Samsung Electronics’ workforce in South Korea, said the decision was made after management showed no intention of holding talks over its demands.

The union claims its actions have disrupted production, a claim Samsung disputes. 

“Samsung Electronics will ensure no disruptions occur in the production lines. The company remains committed to engaging in good faith negotiations with the union,” the firm said in a statement.

However, the union insists otherwise. “The company has no intention to engage in a dialogue even after the first general strike, thus we declare a second general strike starting from July 10th, lasting indefinitely,” the NSEU stated.

So far, about 6,500 workers have participated in the strike, with the union urging more members to join the industrial action. 

A protest on Monday saw attendance from around 3,000 people.

Samsung Electronics declined to comment on how many workers had joined the walkout. 

Jung In Yun of Fibonacci Asset Management Global told BBC News, “In our view, there will be no production disruption.”

Last month, the NSEU staged the first walkout at Samsung Electronics since its founding over five decades ago. 

Samsung Electronics, the world’s largest maker of memory chips, smartphones, and televisions, is the flagship unit of the Samsung Group, which plays a dominant role in South Korea’s economy.

Historically, Samsung Group did not allow unions to represent its workers until 2020, following intense public scrutiny and the prosecution of its chairman for market manipulation and bribery.

Following the NSEU’s announcement, Samsung Electronics’ shares traded about 0.5% lower on the Korea Stock Exchange. 

This development comes just a week after the company projected a 15-fold increase in profits for the second quarter of 2024, driven by a boom in artificial intelligence (AI) technology and rising prices of advanced chips.

Source: BBC

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