The biggest labor union representing workers at Samsung Electronics, the National Samsung Electronics Union (Jeonsamno), decided to call off its strike on August 1. This comes 25 days after the union declared an “indefinite” general strike. The union told its 31,000 members to return to work by August 5. “We will switch to a long-term plan involving guerrilla strikes and compliance actions,” the union announced on social media.
While the union intends to continue its protests, it has decided to halt the collective refusals to work. The union, led by workers at Samsung Electronics’ semiconductor division (DS), launched the strike on July 8, demanding higher wages and a revamp of the performance-based pay system.
The financial burden on workers appears to be the primary reason for ending the strike. During negotiations with management, the union demanded 2 million welfare points, equivalent to 20 million won ($14,500) in cash, to compensate for wage losses due to the strike. The company rejected this request, citing the “no labor, no wages” principle under the labor law. “We need to reduce the economic burden on our members and transition to a form of protest that continues to pressure the company.”
The dwindling number of members participating in the strike and the resulting loss of momentum were also cited as reasons for ending the strike. While the union estimates that around 6,500 people attended the initial rally at the Hwaseong plant on July 8, attendance had dropped to just 350 people by the rally held on July 11 at the Giheung campus. Despite union instructions for members to “not disclose their participation in the strike to the company and to go AWOL,” many members were reluctant to continue due to financial strain.
Another factor contributing to calling off the strike was the impending expiration of the union’s status as the representative bargaining union. With only five days remaining in its current role, Jeonsamno faces challenges from other unions within the company. There are five labor unions at Samsung Electronics, and another union has recently raised issues with Jeonsamno’s strike, suggesting that Jeonsamno might lose its representative status soon.
Future negotiation prospects between the labor union and management remain uncertain. Jeonsamno has demanded a 5.6% wage hike for its members, higher than the 5.1% increase set by the labor-management council. The union also called for a revision of the performance pay calculation criteria. Samsung Electronics has expressed willingness to accommodate many of the union’s demands but remains firm in its decision not to compensate for wages lost during the strike.
