Samsung Electronics, union hold last-ditch talks to avert strike threatening global supply chains
Key takeaways
- The threatened 18-day strike starting on Thursday comes amid an acute global shortage in memory chips, which are essential components in AI data centres, smartphones and laptops.
- Adding to pressure on the union, a South Korean court partially granted Samsung’s request for an injunction, ordering the union to ensure any strike did not disrupt production.
- The two main unions could face fines of 100 million won ($72,000) per day each if they failed to comply, while union leaders could be fined 10 million won per day, the spokesperson said.
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Add ARY News on Google AAResize SEOUL: Samsung Electronics and its labour union started talks on Monday in a last-ditch bid to avert the biggest strike in the tech giant’s history, amid concern that a walkout by more than 45,000 workers could hit South Korea’s economy and disrupt global supply chains.
The threatened 18-day strike starting on Thursday comes amid an acute global shortage in memory chips, which are essential components in AI data centres, smartphones and laptops. The shortage has fueled soaring profits at Samsung and its peers in recent months.
Monday’s talks follow the collapse last week of a first round of government-mediated negotiations over pay and bonuses at the world’s largest memory chipmaker, which accounts for nearly a quarter of South Korea’s exports.