The Azerbaijan State News Agency


Samsung Electronics hit by unprecedented 3-day strike

Samsung Electronics hit by unprecedented 3-day strike

Baku, July 8, AZERTAC

More than 6,500 workers at Samsung Electronics have followed up the first ever walkout at the South Korean tech giant with a full-blown strike over pay and conditions, according to Financial Times. Workers from the National Samsung Electronics Union, whose more than 30,000 members account for a quarter of the South Korean company’s workforce, struck on Monday. Union members had previously taken a collective day off from their annual leave in early June in the first-ever walkout in Samsung’s 55-year history. The union is demanding that Samsung respect labour activities, improve bonuses and increase holiday allowances. With only about 20 per cent of NSEU members taking part, the industrial action was weaker than strikes at other big Korean companies such as Hyundai Motor where unions are more militant. But the strike had not been made mandatory and observers said the numbers were higher than the union and public expected. The three-day action comes as Samsung struggles to ease concerns about its weakening technological competitiveness, especially in advanced D-Ram chipmaking such as high bandwidth memory chips used for training artificial intelligence models such as ChatGPT. The union expects some disruption to Samsung’s chipmaking operations, with it claiming that its estimated 6,500 taking part were more workers than expected, including 5,000 in semiconductor design, manufacturing and development. Samsung said its operations were not being affected. “We are doing this out of desperation that it can’t be done if not now,” union leader Son Woo-mok said at a rally in pouring rain outside Samsung’s headquarters in Hwaseong, 45km south of Seoul. “We will continue to struggle until the company changes.” The union has threatened to hold a five-day strike next week if the company does not accept its demands. The walkout comes after Samsung last week reported its fastest pace of sales and profit growth in years in the second quarter on the back of the industry’s strong recovery from last year’s historic slump. The company posted a more than 15-fold increase to Won10.4tn ($7.5bn) in April to June operating profit on strong demand for artificial intelligence products. Despite the stronger-than-expected quarterly earnings, the world’s largest memory chipmaker is grappling with a series of challenges. Samsung shares have gained about 10 per cent so far this year, but this lags far behind a 60 per cent rally in the shares of domestic memory-chip rival SK Hynix, as investors remain worried about its performance in the booming AI segment.

The labour unrest is a new challenge for a company with an anti-labour reputation. Its union membership has sharply increased since chair Lee Jae-yong declared an end to the company’s no-unions policy in 2020. The NSEU has accused Samsung’s management of failing to capitalise on booming AI demand. It has yet to pass Nvidia’s qualification tests for high bandwidth memory chips, while SK Hynix has benefited from being the exclusive supplier of the most advanced chips to the US company. Many analysts expect Samsung to start supplying the high bandwidth chips to Nvidia in the second half of this year. “It will probably happen in the near future,” said Chan Lee, managing partner at Petra Capital Management, a Seoul-based hedge fund. “Now that the direction is clear, the company will fast catch up in the field.”

Share news on social media

Follow us on social network

President of Azerbaijan Ilham Aliyev met with Chancellor of Germany Olaf Scholz in Oxford VIDEO

Azerbaijani karate fighter triumphs at EUG2024

President Ilham Aliyev: We supply our oil to very sensitive destinations which are largely dependent on Azerbaijani crude

® Buy a smartphone from Bakcell with an exclusive offer

President Ilham Aliyev attended official reception held in honor of summit participants in Oxford

President: There will be more opportunities for Azerbaijani gas to supply more European countries

President Ilham Aliyev: The strategic partnership aims to double our gas supply to Europe

Juventus say France's Adrien Rabiot won't continue at club

Azerbaijan, Montenegro sign MoU on development of basketball

Assassination attempt on Trump attack on democracy: Turkish president

‘International Liberation Front will serve as a new platform for fighting colonialism’

New Caledonian FM: A new chapter starts today for those suffering from French colonialism

International Liberation Front’s website launched

Women entrepreneurs of Türkiye, Azerbaijan and Turkish Republic of Northern Cyprus to convene in Lefkosa

Declaration on establishment of International Liberation Front signed in Baku

President Ilham Aliyev attended closing plenary session of 4th summit of European Political Community VIDEO

President of Azerbaijan Ilham Aliyev met with Prime Minister of the Czech Republic Petr Fiala in Oxford VIDEO

BHOS student to participate in symposium in US

Suspected arson attack in Nice kills 7 including children

Ursula von der Leyen secures five more years in top EU job

FM Bayramov informs UK Foreign Secretary about steps taken by Azerbaijan regarding peace process

President of Azerbaijan Ilham Aliyev met with President of Finland Alexander Stubb in Oxford VIDEO

President of Azerbaijan Ilham Aliyev met with President of Lithuania Gitanas Nausėda in Oxford VIDEO

President Ilham Aliyev addressed roundtable on “Energy and Connectivity” as part of 4th summit of European Political Community

Ibrahimovic’s son signs first professional contract with Milan

Azerbaijan’s Economy Minister holds series of meetings in Italy

UN Secretary-General appeals to world community on Nelson Mandela International Day

How AI and Robotics are transforming the $9 trillion healthcare sector

Central Bank: $80.2m worth of demand fully covered at FX auction

President Ilham Aliyev participated in opening plenary session of 4th summit of European Political Community VIDEO

President of Azerbaijan Ilham Aliyev talked to Prime Minister of Hungary Viktor Orban VIDEO

President Ilham Aliyev talked to President of Switzerland Viola Amherd in Oxford VIDEO

European Political Community convenes in UK to tackle major continental issues

President of Azerbaijan Ilham Aliyev met with Prime Minister of Luxembourg Luc Frieden in Oxford VIDEO

Azerbaijan, Slovenia discuss energy cooperation

President Ilham Aliyev is on working visit to UK to participate in 4th summit of European Political Community VIDEO

Death toll rises to 16 from department store fire in Southwest China

Foreign Ministry: Azerbaijan, Romania explore strengthening of strategic partnership

® Kapital Bank introduces its new “Pupil Health Insurance”: Ensuring your children’s safety

Turkish foreign minister discusses fight against terrorism during official visit to Niger

Shusha hosts conference on “Women in the Islamic world: Traditions and challenges”

Oil prices rise in global markets

Azerbaijan’s Defense Ministry: Snipers’ professionalism increased VIDEO

Azerbaijani oil price rises in global markets

Trains suspended, people evacuated as downpours lash parts of China VIDEO

Azerbaijani diaspora representatives from Kazakhstan visit Fuzuli and Shusha

Female judoka Mammadaliyeva and boxer Abdullayev to carry Team Azerbaijan flag at Paris 2024 Opening Ceremony

Azerbaijan and Israel explore prospects for educational cooperation

Inter Miami issues Lionel Messi injury update after Copa America final

Vietnamese President receives ambassadors of Turkic countries

“Birlestik-2024” international exercise ends

Azerbaijani female shooter earns Paralympic berth

Azerbaijan joins international roundtable on "Islamophobia and Education" in Malaysia

Baku hosts opening ceremony of Congress of Independence Movements from French-colonized territories VIDEO

Italy antitrust targets Armani, Dior after worker exploitation probes

US federal authorities warn of potential violence following Trump assassination attempt

Azerbaijani badminton players win two bronzes in Istanbul Youth Open 2024

Azerbaijan’s cultural capital of Shusha to host Vagif Poetry Days

Luka Modric signs new one-year Real Madrid contract

Azerbaijan`s Guba to host FIBA 3x3 Women's Series 2024

SOCAR and Slovenia`s Geoplin ink MoU on gas supply cooperation

Climate change is making days longer, scientists discover

Euronews: Summer in Azerbaijan has something for everyone

1 million Italians expected to be over 90 years old in next 3 years

® Birbank installment cardholders can now enjoy the option of paying in installments for their Trendyol payments

Centuries-old frescoes at Sumela Monastery in northeastern Türkiye undergo meticulous restoration

New Caledonian FM: We must find solution to steer away from this difficult path at Baku Congress

‘Baku Initiative Group announces scholarship for young people living in French colonies to study in Azerbaijan’ VIDEO

Member of New Caledonian Congress: Suppression of our rights by French state is inadmissible and unacceptable

ADB Approves Support for Rooftop Solar Systems in India

South Sudan faces growing humanitarian crisis, warns WHO

Bulgaria Is among European Countries with Biggest Share of University Graduates with Permanent Contract of Employment

Climate change making days slightly longer: Research

Azerbaijani energy minister meets with World Bank Regional Director for South Caucasus

IMF revises up Turkish economy's 2024 growth forecast to 3.6% from 3.1%

A cave on the moon is confirmed, and scientists suspect hundreds more like it could house future explorers

Magnitude 3.2 quake hits Azerbaijan’s Guba district

Azerbaijani oil price down in global markets

“Birlestik-2024” exercise demonstrates tactical episode, Defense Ministry VIDEO

Leadership of Azerbaijan Defense Ministry continues visit to Kazakhstan

Azerbaijan, Belarus discuss prospects for development of military-technical relations

Elon Musk plans to give $45 million a month to pro-Trump super PAC, WSJ reports

Gareth Southgate resigns as England head coach

® Nar congratulates students on the end of admission exams

Jeyhun Bayramov meets IOM Chief in Azerbaijan to discuss return of IDPs to their homes

Azerbaijan, Italy discuss developing of Middle Corridor and prospects of cooperation

Vaughan Gething resigns as first minister of Wales

® "Bakcell" introduced AI-powered "Tariff Advisor" in its app

® Digital Transformation and the Future of Artificial Intelligence: An Interview with Nariman Asadov

Volcanic activity continues at Mount Etna in Italy

Azerbaijan, Israel discuss energy cooperation

Baku to host 1st Congress of Independence Movements from French-colonized territories

Russia antivirus firm Kaspersky quits US after ban

Events held within “Birlestik-2024” exercise

Germany's rail system gets major overhaul

Rector of Transilvania University of Brașov visits Azerbaijan State University of Economics

Around the world walker set to swim Caspian Sea

Two Azerbaijani karate fighters shine in Kazakhstan Open

Roberta Metsola is re-elected president of European Parliament

Two hikers found dead in U.S. national park amid high temperatures