In a significant development, the National Samsung Electronics Union, a major union representing tens of thousands of workers at Samsung Electronics, has announced their decision to go on strike for the first time. This move has the potential to disrupt key global semiconductor supply chains, as Samsung Electronics is the world's largest producer of memory chips.

The union members, comprising around 20% of the company's workforce and totaling 28,000 people, will utilize their annual leave to strike for one day on June 7. This initial strike action indicates the possibility of a future general strike if the ongoing negotiations with management fail to address the workers' concerns.

The primary point of contention between the union and the company has been wages. Despite negotiations that have been ongoing since January, the two sides have been unable to bridge their differences. Union representatives have expressed frustration over what they perceive as the company's neglect of laborers and their lack of communication in the negotiation process.

While the union has accepted the proposed pay raise offered by the company, they are also demanding one additional holiday and a transparent system to measure performance bonuses based on sales profit. The union claims that the company has not been receptive to their demands, leading to the decision to go on strike.

A spokesperson for Samsung Electronics responded by stating, "Samsung will keep in dialogue with the labor union going forward as it has been." Nevertheless, union representatives have emphasized that this one-day strike could potentially escalate into a general strike if the company fails to address their concerns.

The strike action by 20% of Samsung Electronics' workforce is significant and could have far-reaching implications. As one of the world's largest smartphone manufacturers and a leading supplier of high-end memory chips, the company plays a vital role in global supply chains, especially in the field of generative AI.

This strike marks a stark departure for Samsung Electronics, as the company has historically avoided unionization of its employees. Previous internal documents have revealed strategies to prevent the formation of unions, such as dismissing key organizers before union launch.

However, in 2019, amidst a change in political climate and controversies surrounding the company's leadership, a union was successfully established. With the strike now taking place, Samsung Electronics finds itself in uncharted territory, lacking prior experience in managing such situations.

Experts predict that the strike will have significant implications for the company's operations, particularly in the rapidly evolving semiconductor industry. Unlike companies like Hyundai Motor, which have dealt with strikes on an annual basis, Samsung Electronics' management may face challenges in effectively managing this situation due to their lack of prior experience with strikes.

As the strike date approaches, it remains to be seen whether Samsung Electronics and the union can find common ground and avert further disruptions to the global semiconductor supply chains.