Samsung’s production numbers reportedly plummeted significantly during a one-day strike by the company’s labor union. According to Seoul Economic Daily, citing union officials, the company’s memory fab output fell by 18% while its contract chip foundry plunged by 58.1%. These numbers only affected the night shift after the April 23 strike, with the “Joint Struggle Headquarters” saying that it will conduct a larger 18-day labor action if company management fails to reach a deal with workers. The union estimates that the walkout, which would last for more than two weeks, will cost the company KRW 30 trillion, or over $20 billion. It also threatened to mobilize personnel assigned to the fabs’ “safety protection facilities.”
The disagreement between the union and management stems from the company’s refusal to allocate 15% of its operating profit as a bonus for its workers, amounting to around $27 billion (about KRW 40 trillion), and would net chip fab workers around $400,000 each. Aside from this, the union also demanded a 7% increase in pay and a removal of the 50% bonus cap. The management made a counteroffer of a 10% operating profit bonus, 6.2% wage increase, and preferential mortgage loans, among other benefits, but it seems that this wasn’t enough for the union.
