The collapse has raised the prospect of an emergency arbitration order, a legal mechanism that would immediately freeze industrial action for 30 days while the labor commission mediates. South Korean Labor Minister Kim Young-hoon stopped short of invoking it on Wednesday, saying the dispute should be resolved through dialogue. The union has warned that such an order would damage labor relations further.
The tool has rarely been used, and doing so would be an unusual step for the current administration, which is friendly towards unions, but the economic stakes are substantial: semiconductors accounted for 37% of South Korea's total exports in April, up from 20% a year earlier, according to government data cited by Reuters .
The union now counts more than 90,000 members, representing over 70% of Samsung's South Korean workforce. That figure has grown from roughly 73,000 earlier this month and 32,000 during Samsung's first-ever strike in 2024. A one-day walkout in April offered a preview of what a full stoppage could do: Samsung's memory fab output fell 18% on the affected shift, and contract foundry production dropped 58%. With a potential 18-day strike, the losses in production and profit could be even larger.
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Notton So the union is asking for 10% of the cut for its members, but Samsung is so greedy they'd rather lose anywhere from 1% to 4.5% up to 7.5% of its annual revenue instead of paying out. Even at 10% of the cut, Samsung's payout would be less than what SK Hynix is paying its employees. Reply
jp7189 It would be nice to hear more detail about the nature of the dispute. The article mentions bonus structure. Is that it? Reply
S58_is_the_goat Notton said: So the union is asking for 10% of the cut for its members, but Samsung is so greedy they'd rather lose anywhere from 1% to 4.5% up to 7.5% of its annual revenue instead of paying out. Even at 10% of the cut, Samsung's payout would be less than what SK Hynix is paying its employees. They rather lose billions than give out bonuses 🙄 Reply
SkyBill40 jp7189 said: It would be nice to hear more detail about the nature of the dispute. The article mentions bonus structure. Is that it? That seems to be the crux of it, due to the now significant spread between Samsung and SK Hynix. Reply
ezst036 The obvious answer to executive greed is a marked increase of union greed. Of course that will fix everything. Meanwhile I just watched RAM prices go up again. Thanks Samsung workers I appreciate all of your hard work to exacerbate the problem. Reply
SHaines ezst036 said: The obvious answer to executive greed is a marked increase of union greed. Of course that will fix everything. Meanwhile I just watched RAM prices go up again. Thanks Samsung workers I appreciate all of your hard work to exacerbate the problem. Context is important. The workers have absolutely nothing to do with RAM prices. They don't clock in and decide what to work on; they are given directives and work accordingly. Also, Samsung is generating vast sums in profit and the employees who are directly responsible for every penny of it are, rightfully, asking to receive the rewards of their labor. As long as the handful of billionaires who currently control the US economy are absolutely committed to the eventual return on investment for AI, there's no imminent relief. None of this is caused by workers wanting their pay to reflect their value. Reply
ezst036 SHaines said: The workers have absolutely nothing to do with RAM prices. Threatening a manufacturing halt for RAM is no different than threatening blockages in Hormuz. It's going to make the price of oil RAM go up even if it doesn't actually happen. Then if it does actually happen its even worse. So this statement is incorrect. The workers do absolutely have something to do with RAM prices. We can prove it with the "Hormuz test". SHaines said: Also, Samsung is generating vast sums in profit and the employees who are directly responsible for every penny of it are, rightfully, asking to receive the rewards of their labor. As long as the handful of billionaires who currently control the US economy are absolutely committed to the eventual return on investment for AI, there's no imminent relief. None of this is caused by workers wanting their pay to reflect their value. The reverse is true. The greed of the executives is rolling down hill and the workers are learning from said greed and saying we want a chunk of it too. Greedy executives teach greed, workers learn. Nobody believes AIpocalypse/RAMpocalypse is going to last forever. Yet they want their gimmes to last forever though. Greed is by far the best and most accurate word to use. No other word comes anywhere near as close. It is greed. We're the ones who will continue to suffer. Reply
chaos215bar2 ezst036 said: The obvious answer to executive greed is a marked increase of union greed. Of course that will fix everything. No. The answer is regulation to rein in that executive greed. Frankly, the union shouldn't have even had to force the issue. Why are you giving the executives a pass? You think the people running the show have no culpability? That's sure a neat gig if you can swing it — reap all the rewards, and then just pin the blame on someone else when things blow up in your face. ezst036 said: Meanwhile I just watched RAM prices go up again. Thanks Samsung workers I appreciate all of your hard work to exacerbate the problem. And this is the workers' fault somehow? They haven't even gone on strike yet. Even if they do, you don't get to just pin all the blame on one party. Stopping production is the only negotiating leverage the workers have. This is what happens when you don't treat your workforce as an equal partner and they get tired of the situation. Maybe go read up on all the worker revolts during the industrial revolution. Given enough people with an attitude like yours, that's exactly where we're headed. ezst036 said: Threatening a manufacturing halt for RAM is no different than threatening blockages in Hormuz. 🙄 Ah, there we go. Paint labor negotiations as an act of war so you can justify use of force. Taking us straight back to the 1890s. ezst036 said: We're the ones who will continue to suffer. Unless you're worth upwards of 50 million, these people are standing up for worker rights that ultimately benefit you. How is that so hard to understand? You are almost certainly in the same position as these workers, and you can't even see it. Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/samsungs-last-ditch-union-talks-collapse-eight-days-before-planned-18-day-chip-factory-strike#main
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Informational only. No financial advice. Do your own research.