SAMSUNG ELECTRONICS: UNVEILING THE ECHOES OF A HISTORIC ONE-DAY STRIKE

When workers at Samsung Electronics, the world’s largest technology company, staged a one-day walkout this March, it was the first of its kind in the company’s 70-year history. The impact has been felt not only at Samsung but could have far-reaching consequences for the entire global tech sector.

THE DAY SAMSUNG STOOD STILL

At the centre of this historic action was NSEU, representing about 28,000 members, or one-fifth of Samsung’s workers. The chips claim is part of an implied wider demand for recognition. This division, consisting of various parts required by the tech industry including RAM, NAND chips, Exynos processors and more, is a powerhouse within Samsung. It has often held the title of the world’s number one chipmaker in revenue.

A STRIKE FOR EQUITY AND RECOGNITION

Their demands are straightforward: decent pay. For years, bonuses accounted for up to 30 per cent of a Samsung worker’s salary. No bonuses last year meant a cut of about 30 per cent for many people. On an average salary of $60,000 per year before bonuses, the strike is about living wages and dignity. Union VP Lee Hyun Kuk said: ‘After more than 30 years of working for Samsung, our current working conditions do not reflect the fruits of our hard labor.

A RIPPLE ACROSS THE TECH POND

Even though their action was presented as a one-day strike, the implications extend far beyond a 24-hour period. The company’s announcement of a profit of $1.4 billion in chip products in the first quarter of this year puts it in a different galaxy to the workers’ claims. Although the authorities say that the stoppage itself will have little impact on chip production, such a brief strike should not be underestimated given the symbolism it represents in reminding people of the centrality of the workforce to their lives.

THE UNCHARTED TERRITORY OF TECH DISRUPTIONS

What a long-term strike at Samsung might reveal about the reliability and malleability of the tech world is a question for another day. Samsung’s position at the forefront of tech hardware means that a strike could disrupt a vast number of other industries that use its components. Competitors such as SK Hynix and Micron could fill the gap in the short term, but the particulars and possibilities of Samsung’s first-ever strike are largely unknown.

THE ROAD AHEAD

The dust has barely settled on this watershed strike. Both Samsung and the NSEU are at a turning point. The way they resolve this case will determine not only Samsung’s relationship with its employees in the future, but will establish a precedent across the tech industry. The union’s display of strength and solidarity could herald a new wave of labour activism in a sector not typically associated with unionisation.

REFLECTING ON SAMSUNG ELECTRONICS

Fundamentally, Samsung Electronics is a global giant, famous for technical innovation and for being the largest manufacturer of electronics in the world. Apart from the company’s highly visible consumer products – smartphones, flat screen TVs, etc – Samsung also manufactures a large amount of other components that power devices for nearly every brand. The recent strike represents the struggle within such a giant entity to reconcile profit and fair labour.

Looking ahead, as Samsung moves forward from this unprecedented action – like, say, settling for collective bargaining, a measure workers have been trying to legislate for decades but to which the president of Samsung has been strongly opposed – the world will watch to see how the company responds to the changing of the tide in labour relations, and if the company will be able to adapt, set by set, to the new realities of labour relations here and in the world at large. For now, a company’s relationship with its workforce is as important to its future as its machines.

Samsung Electronics is at a crossroads of continuity and change: the outcome of this strike and the negotiations that follow will not only define the future of its tens of thousands of workers, but also send ripples through the industry. Technology-driven innovation will remain at the core of Samsung’s business. But as Samsung continues to offer the latest in technological innovations, it will also have to figure out how to transform into a company that can lead technological innovation while generating equitable and sustainable prosperity.