Samsung Union Threatens 18-Day General Strike on May 21 to on June 7 Demanding 15% of Operating Profit as Bonuses
“shutdown” are growing across industry as Samsung Electronics’ labor union has warned of an 18-day general strike next month.(Photo: SBS screen captured)
Global big tech companies are also reportedly asking Samsung Electronics whether it will be able to secure semiconductor supply volumes.
According to domestic media reports on April 27, the Samsung Electronics Union Joint Struggle Headquarters held the “April 23 Struggle Resolution Rally” near the company’s Pyeongtaek campus in Gyeonggi Province on April 23, with about 40,000 union members in attendance.
The Joint Struggle Headquarters consists of the Samsung Electronics Branch of the Korean Metal Workers’ Union, the National Samsung Electronics Union, and Samsung Electronics Union Donghaeng.
They plan to begin an 18-day general strike from on May 21 to on June 7 if no agreement is reached with management.
The union is demanding that management use 15% of operating profit as the source of performance bonuses and abolish the existing cap on such bonuses.
The resolution rally was simultaneously reported by major foreign media outlets including The Associated Press and Agence France-Presse. Those outlets said that if a Samsung Electronics general strike becomes reality, it could disrupt production of artificial intelligence (AI) semiconductors and further intensify upward pressure on global memory prices.
Industry sources say that after the large-scale rally, inquiries from global big tech firms over the possibility of semiconductor supply disruptions are also beginning in earnest.
Samsung Electronics’ high-bandwidth memory (HBM), DRAM, and NAND flash products are key components in the global AI ecosystem. In addition, Samsung semiconductors are used in a wide range of industries including smartphones, personal computers (PCs), and automobiles, meaning a halt in operations would inevitably deal simultaneous blows to multiple sectors.
Production disruption was in fact confirmed during nighttime hours on the day of the rally.
According to the union, as wafer transfer volume in the night shift that began at 10 p.m. on April 23 declined, production in the foundry sector plunged 58.1%, while the memory sector also fell 18.4%. In the case of the Giheung S1 line, the drop reportedly reached 74.3%.
The union is pressing management by estimating that if the 18-day general strike becomes reality, damage totaling KRW 20 trillion-$14.50 billion to KRW 30 trillion-$21.75 billion could occur when combining shutdown losses and equipment recovery costs.
Brokerage assessments are similar. In a report, KB Securities analyzed that if the strike continues for 18 days, an additional two to three weeks would be needed for production facility maintenance and yield recovery.
Given Samsung Electronics’ global market shares in DRAM and NAND flash, at 36% and 32%, respectively, the brokerage also estimated that the global supply disruption caused by the strike could reach 3% to 4% for DRAM and 2% to 3% for NAND.
Kim Dong-won, head of research at KB Securities, said, “This strike issue will act as a key variable that deepens supply shortages in a tight memory supply-demand environment and further strengthens upward pressure on prices.”
If the strike materializes, it would mark the second general strike in Samsung Electronics’ history since the company’s founding in 1969. Previously, the union carried out a 25-day general strike in July 2024.
Jung Suk-yee
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