Labor negotiations between Samsung Electronics and its largest union ended in failure, with the two sides unable to reach an agreement on issues such as salary and performance-based pay systems.After the three-day "final negotiations" ended, the Samsung Electronics National Labor Union (NSEL) announced that they would continue the strike indefinitely due to the breakdown of negotiations.
NSEL has started an indefinite general strike since July 8. The union demands a 3.5% increase in the basic salary of all members, an additional day off to commemorate the establishment of the union, and an improvement in the performance pay system. In addition, they also demand compensation for economic losses caused by the strike.
Negotiations from July 29 to 31 were seen as the last chance to resolve the dispute, however, despite in-depth discussions, no agreement was reached.
NSEL's representative bargaining rights expire on August 4 and if another union claims bargaining rights, NSEL will lose its representative status and be unable to maintain the strike. This adds a sense of urgency to the situation, as the union's ability to continue acting is at stake.
NSEL mainly consists of employees in the semiconductor division, who did not receive performance pay last year due to the downturn in the semiconductor market. This economic context fueled union demands and subsequent strikes.
The current strike follows dozens of negotiations between labor and management since last year over a wage deal for 2023 and 2024.
The current situation is that the two parties have failed to reach an agreement and have reached a deadlock. NSEL's representative negotiation rights are about to expire, and the situation is imminent and may change the dynamics of the dispute.