Seoul court orders Samsung union to keep minimum operations during strike

All eyes are on talks between Samsung Electronics management and the company's union which has threatened to take its 40,000+ workers on a complete strike starting May 18 if its demands are not met.

Samsung petitioned a district court in Seoul, South Korea to prevent a complete shutdown. The court has now ordered the union to ensure that minimum operations are maintained during the strike to prevent damage to raw materials and production facilities.

A total strike would completely shut down Samsung's manufacturing capabilities. Since semiconductor production equipment is highly sensitive and very expensive, it won't be as simple as flipping a switch to bring it back online.

The court order doesn't prevent the union from going on strike, but it does reduce their leverage a bit. They will be required to maintain minimum operations so that the production facilities are not damaged. The court has also ruled that workforce has to be maintained at normal levels even on strike.

The largest of the three unions at the company, Samsung Electronics Labor Union, has also been prevented by the court from taking over company facilities or stopping workers from entering them.

If these orders are violated, each of the three unions will be required to pay approximately $66,000 in addition to ~$6,600 from Choi Seung-ho, chairman of SELU, for every single day the court order is violated.

Talks between the management and union are still ongoing, but no meaningful breakthrough has been achieved as yet. A strike would cost Samsung billions of dollars and also exacerbate the current supply constraints in the memory semiconductor market. The ripple effect of this strike would be felt by the entire industry, and by extension, even consumers.