Samsung Electronics said on April 16 that it has applied to a court to prevent its South Korean labour unions from carrying out illegal activities in the event of a strike, a company spokesperson stated. The move comes as a wage dispute with unionised workers threatens to disrupt operations at the world’s largest memory chipmaker.
Union members authorised strike plans last month and have warned they could stage an 18-day work stoppage beginning May 21 if management and unions do not reach a wage deal. The unions also plan to hold a significant rally on April 23 to intensify pressure during ongoing wage negotiations.
The unions responded to Samsung’s legal action by calling it a "declaration of war," accusing the company of violating the workers' right to strike, which the unions say is protected under law. Samsung, for its part, said in a statement that it does not intend to block lawful industrial action. The company asserted that the court filing is targeted at preventing unlawful conduct during labour action, specifically citing potential occupations of production lines as an example of behaviour it seeks to stop.
Workers at Samsung have voiced frustration over a pay disparity with nearby rival SK Hynix and are pushing the company to lift a cap on performance pay and to tie bonuses to operating profit. Samsung reported an estimated operating profit of 57.2 trillion won for the January to March period, up from 6.69 trillion won a year earlier.
Union leadership told Reuters that a strike could impact roughly half of the output at Samsung’s large semiconductor complex in Pyeongtaek, south of Seoul. Observers say that a stoppage at the world’s largest memory chip manufacturer could exacerbate existing bottlenecks in global semiconductor supplies, which have been under strain from strong demand for artificial intelligence data centre operations and have constrained availability for sectors ranging from automobiles and personal computers to smartphones.
For context on currency conversion cited in reports, the exchange rate noted was $1 = 1,472.2600 won.
Summary of events:
- Samsung filed for a court order on April 16 to block unlawful strike-related actions by unions.
- Unions authorised strike plans and may walk out for 18 days starting May 21 if no wage agreement is reached; a major rally is planned for April 23.
- Unions say the company's legal action is a "declaration of war" and allege infringement of strike rights; Samsung says it aims only to prevent illegal activities such as occupation of production lines.