Samsung workers went on strike demanding fair wages, transparent bonuses, and improved working conditions amid ongoing
unionization challenges.
By Pranjal Pandey
Author Bio: This article was produced by Globetrotter. Pranjal Pandey, a journalist and editor located in Delhi, has edited seven books covering a range of issues available
at LeftWord. You can explore his journalistic contributions on NewsClick.in.
Source: Globetrotter
On June 7, Samsung workers in South Korea embarked on their first-ever strike, organized by the Nationwide Samsung
Electronics Union (NSEU). This historic event involved approximately 28,000 union members, representing about one-fifth
of Samsung’s workforce in South Korea. The strike targeted Samsung’s chip division, which manufactures a variety of
critical components such as RAM, NAND flash chips, USB sticks, SD cards, Exynos processors, camera sensors, modems, NFC chips, and power/display controllers. The action highlighted deep-seated issues
surrounding unionization within Samsung, marking a significant shift in the company’s labor dynamics. Throughout the
strike, union members posted visible notices on Samsung facility doors, outlining their grievances and demands.
Lee Hyun-kuk, vice president of the National Samsung Electronics Union, described this action as “largely symbolic, but it’s a beginning.” He emphasized that the union has contingency plans for subsequent strikes if management does not. Lee further stated
that the possibility of an all-out general strike remains on the table, underscoring the union’s determination to press
for their demands.
The union is pushing for a 6.5 percent salary hike, in contrast to the company’s proposed 5.1 percent raise, as well as
an additional day of annual leave and a more transparent approach to calculating bonuses. Bonuses are particularly
important because they make up a significant part of employees’ pay. In 2023, the method for calculating bonuses, which
takes into account both operating profit and cost of capital, resulted in no bonuses being paid to workers. The union
argues that bonuses should be based solely on operating profit. Samsung’s chip division reported a profit of $1.4
billion in the first quarter of this year.
Samsung Group has consistently opposed unionization efforts, resulting in policies that keep wages low, provide minimal
benefits, and enforce extended work hours. In December 2013, the Korean Metal Workers’ Union (KMWU), supported by the IndustriALL Global Union, revealed widespread violations of workers’ rights within Samsung. These violations included reports of kidnapping and
physical violence against union leaders, alongside targeted training programs for management aimed at preventing union
formation.
Samsung’s global reputation in the IT sector is also marred by its challenging working conditions, characterized by long
hours and a reliance on precarious employment arrangements. The company actively dissuades workers from joining unions
and pressures unionized precarious employees to disengage from their representative organizations. These tactics involve
paying lower wages to union members and subjecting them to intensive monitoring, which raises significant ethical
concerns about Samsung’s treatment of its workforce in the technology industry.
Samsung Electronics Co., Ltd. operates with a hierarchical workforce structure that reveals significant disparities. At the top are highly
paid professionals and research and development personnel critical for innovation and product development. In the middle
tier are skilled tradespeople and manufacturing workers across Samsung’s global factories, including those in South
Korea, essential for production but often facing challenging conditions. At the lower end of Samsung’s labor hierarchy
are workers employed by contractors and subcontractors, a group for whom Samsung denies responsibility despite their
crucial role in the company’s operations.
The intense work culture at Samsung became evident during the 2012 Samsung-Apple patent trial, which exposed rigorous
work conditions among research and development staff. Chief designer Wang Jee-yuen’s testimony vividly depicted the
demanding nature of the job, including prolonged work hours that impacted personal well-being and family life.
Women constitute a significant portion of Samsung’s skilled workforce, often recruited from smaller towns to work in
semiconductor labs. They endure extended shifts, rotating schedules, and exposure to hazardous substances.
Samsung is not alone in exploiting its workers. A study shows that iPhone workers today are exploited 25 times more than textile workers in 19th-century England. The exploitation
rate for iPhone workers is incredibly high at 2,458 percent. This means that workers spend most of their day producing
goods that make the company richer, with only a tiny part of their workday going towards their wages.
Amazon, a major employer in the U.S., is notorious for its challenging working conditions. Employees in Amazon
warehouses face physical strain, workplace injuries, and mental health issues as part of their daily job risks. The
company utilizes advanced surveillance systems to closely monitor employee activities. While Amazon asserts these
measures enhance safety, workers often feel pressured to maintain an excessively fast pace to meet productivity
standards.
Additionally, Amazon has actively opposed unionization efforts among its workforce. In 2021, the company spent $4.2 million on consultants to discourage workers from joining unions. However, on April 1, 2022, workers achieved a significant
breakthrough with the establishment of the Amazon Labor Union (ALU), marking the first union at an Amazon facility in
the U.S. This accomplishment came after a year-long struggle against Amazon’s aggressive tactics against unions and
garnered support from dedicated workers and organizers at the Staten Island warehouse.
In 2011, workers at the Maruti-Suzuki Manesar IMT plant in India applied to register a new union, the Maruti Suzuki
Employees Union (MSEU), in Chandigarh. Upon discovering this initiative, management allegedly pressured workers to sign
documents pledging not to join the MSEU. In response, 3,000 workers launched a sit-in strike on June 4, 2011, at the
Manesar Plant, demanding recognition of the MSEU. To further pressure the workers, management fired 11 employees,
including MSEU office bearers, on June 6 of that year, accusing them of inciting the strike. Over time, Maruti Suzuki
has shifted its workforce strategy by increasing the number of contract workers under precarious conditions while
maintaining a smaller core of permanent employees.
These labor movements show the ongoing global battle of workers against exploitation by powerful corporations. They
underscore the challenges and unfair treatment faced by the workers and emphasize the necessity for systemic reform to
ensure fair treatment and the equitable distribution of the benefits of their labor.