South Korea Moves to Avert Samsung Electronics Strike
- tech360.tv
- 4 hours ago
- 2 min read
The South Korean government is pursuing all options, including emergency arbitration, to prevent a labour strike at Samsung Electronics, the nation’s largest employer. Prime Minister Kim Min-seok stated the goal is to minimise any damage should a strike occur.
Samsung Electronics, the world’s largest memory chip manufacturer, and its South Korean labour union will resume pay talks on Monday with a government mediator. This move aims to ease concerns regarding a potentially disruptive strike at the tech giant.
Prime Minister Kim Min-seok said a single day of suspension at Samsung Electronics’ semiconductor factory could incur direct losses of as much as USD 667.68 million. He made the statement following an emergency meeting with ministers.
Kim also expressed concern that a temporary pause on semiconductor manufacturing lines could lead to months of inactivity. He noted worries about economic damage escalating to as much as USD 66.768 billion if materials had to be disposed of due to a strike.
An emergency arbitration order, if invoked by the labour minister, immediately prohibits industrial action for 30 days. This occurs when a dispute is deemed likely to harm the economy or daily life, allowing the National Labor Relations Commission to conduct mediation and arbitration.
This order has been rarely invoked and would represent an extraordinary step for a union-friendly administration. The union stated it would not agree to a pay deal offering a less favourable proposal.
The union also said it would not yield to pressure on arbitration. Samsung accounts for 22.8% of South Korea’s exports and 26% of the domestic stock market.
Prime Minister Kim highlighted that the company employs more than 120,000 people and collaborates with 1,700 suppliers.
South Korea’s government is exploring options, including emergency arbitration, to avert a Samsung Electronics strike.
Prime Minister Kim Min-seok warned of potential direct losses of USD 667.68 million from a single day of factory suspension.
Concerns exist about economic damage potentially reaching USD 66.768 billion from prolonged manufacturing line inactivity.
Source: REUTERS
