1 week Ago By Varun Godinho
Samsung Electronics has reached a preliminary agreement with its main workers’ union for a wage increase of 5.1 per cent. The tech giant reached the deal with the National Samsung Electronics Union – which represents 36,500 workers, or about 30 per cent of the company’s workforce in South Korea.
The two sides have been locked in multiple rounds of talks since January over the wage increase rate, vacation systems and bonuses. Union members will now vote on the deal, which includes more holidays and bonus points that can be used to purchase Samsung Electronics products and other perks. The National Samsung Electronics Union went on strike in July although the company said it did not lead to any disruption in production.
The union had previously demanded a 5.6 per cent basic pay raise for all members, a guaranteed day off on the union’s foundation day and compensation for economic losses due to the strike, while the company offered a 5.1 percent increase in wages.
Samsung Electronics said the latest deal will focus on enhancing its business competitiveness, while the labour union vowed to reap meaningful results in next year’s wage negotiations. Beyond South Korea, workers at Samsung Electronics’ factory in India too had participated in a month-long strike to demand better pay, working facilities and recognition of a newly-formed union. The approximately 1,500 workers called off their strike last month.
Samsung Electronics’ third-quarter sales showed that its chip business posted a sharp decline in profit from the previous quarter. The semiconductor unit reported third-quarter operating profit of 3.86 trillion won (about A$4.
34 billion), down 40 per cent from the previous quarter. Samsung shares have fallen more than 50 per cent from this year’s peak on July 9..
