Listen to this article in summarized format
×
Subscribe to
Unlock AI Briefing and Premium Content
New Year Offer 24 Hours Left
Subscribe NowAlready a member? Sign In
What's Included
- Exclusive Stories
- Daily ePaper Access
- Smart Market Tools
- Curated Investment Ideas
- Ad-lite Experience
Subscription
APSamsung Electronics asked a court on Thursday to block its South Korean labour unions engaging in illegal activities during a planned strike, a spokesperson said, as a wage dispute threatens to disrupt operations at the world's top memory chipmaker.
Samsung did not elaborate on details of its legal action. Unions labelled it a "declaration of war," accusing the company of infringing on its right to strike, which is protected under the law.
Unionised workers at Samsung last month voted to authorise strike plans and threatened to walk out for 18 days from May 21, should they fail to agree on a wage deal with management.
The unions also plan to hold a major rally on April 23, ramping up pressure on Samsung during wage negotiations.
Samsung workers, frustrated by a pay gap with crosstown rival SK Hynix, are calling on Samsung to remove its performance pay cap and link bonuses to operating profit.
The company estimated it made an operating profit of 57.2 trillion won ($38.85 billion) for the January to March period, more than an eightfold jump from 6.69 trillion won a year earlier.
Samsung's union leader told Reuters that a potential strike could affect about half the output at Samsung's giant semiconductor complex in Pyeongtaek, south of Seoul, the capital.
A strike at the world's largest manufacturer of memory chips could worsen bottlenecks in global supply of semiconductors, stemming from robust demand for artificial intelligence data centre operations that has curbed supply to industries from cars and computers to smartphones.
(You can now subscribe to our Economic Times WhatsApp channel)
Samsung did not elaborate on details of its legal action. Unions labelled it a "declaration of war," accusing the company of infringing on its right to strike, which is protected under the law.
Unionised workers at Samsung last month voted to authorise strike plans and threatened to walk out for 18 days from May 21, should they fail to agree on a wage deal with management.
The unions also plan to hold a major rally on April 23, ramping up pressure on Samsung during wage negotiations.
Samsung workers, frustrated by a pay gap with crosstown rival SK Hynix, are calling on Samsung to remove its performance pay cap and link bonuses to operating profit.
The company estimated it made an operating profit of 57.2 trillion won ($38.85 billion) for the January to March period, more than an eightfold jump from 6.69 trillion won a year earlier.
Samsung's union leader told Reuters that a potential strike could affect about half the output at Samsung's giant semiconductor complex in Pyeongtaek, south of Seoul, the capital.
A strike at the world's largest manufacturer of memory chips could worsen bottlenecks in global supply of semiconductors, stemming from robust demand for artificial intelligence data centre operations that has curbed supply to industries from cars and computers to smartphones.
Add 
as a Reliable and Trusted News Source
as a Reliable and Trusted News Source
Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
ETPrime Membership
