Samsung Electronics' workers authorize strike, risks to production grow

The largest union of workers at Samsung Electronics has now voted in favor of their strike plans, significantly raising the risk of production disruptions for Samsung Electronics at a time that is far from convenient.

The union had previously warned that if their negotiations with the company don't reach a satisfactory conclusion, they will go ahead with the plan to strike in May this year.

Reuters reports that workers at the Samsung Electronics' union have now voted to authorize a strike. This authorization further deepends the labour dispute over bonuses and compensation.

Workers feel that while the company has benefitted from the resurgence in the memory market and the improving foundry business, those economic benefits haven't trickled down to them.

The union has said that 93% of its 66,019 workers have voted in favor of the strike, highlighting that this should serve as a “strong warning” to the management that they should respond favorably to the union's demand. In case their demands are not met, the union is now in agreement to strike for 18 days from May 21.

Samsung is one of the world's leading supplier of memory chips. A strike during current market conditions will have global implications, in addition to potential losses for the company. For its part, Samsung Electronics says that it intends to conclude the 2026 wage negotiations with the union” amicably.”