Samsung Workers Rally in South Korea, Demanding Higher Pay and Threatening Strike
Thousands of Samsung Electronics workers have rallied at the company's computer chip manufacturing complex in Pyeongtaek, South Korea, demanding increased bonuses and threatening industrial action. This protest comes as the artificial intelligence boom significantly drives up profits in the memory-chip sector.
Mass Protest at Chip Complex
On Thursday, workers gathered at the factory compound, holding signs and waving banners, with a heavy police presence on site. They chanted slogans such as "make compensation transparent and remove maximum limits on bonuses!" Union officials estimated that approximately 40,000 members participated in the demonstration, although police did not immediately provide an official crowd estimate.
AI Boom Fuels Record Profits
The rally occurred just hours after Samsung's rival, SK Hynix, reported an all-time high in quarterly revenue and operating profit for the January-March period. SK Hynix attributed this surge to expanding global investments in data centers and other AI infrastructure, which have increased demand for memory chips. Samsung, which along with SK Hynix produces about two-thirds of the world's memory chips, forecast earlier this month that its first-quarter operating profit would reach a record 57.2 trillion won ($38.6 billion). This figure surpasses the 37.6 trillion won ($25.4 billion) posted by SK Hynix, though Samsung maintains a more diverse business portfolio, including smartphones and consumer electronics.
Union Demands and Strike Threat
Samsung's union, representing around 74,000 workers, argues that the company has failed to offer adequate compensation despite its strong financial performance. The union has rejected management's proposal for bonuses in the form of restricted stock and is calling for the removal of caps on bonuses. It has threatened to stage an 18-day walkout starting May 21 if negotiations with management fail, claiming that such action would cost the company more than 1 trillion won ($676 million) per day.
Choi Seung-ho, a union leader, declared from atop a crane-mounted structure via loudspeaker, "We won't stop this fight until our fair demands are met."
Challenges Amid Global Uncertainties
While semiconductor manufacturers like Samsung have benefited from the AI-driven demand, the future outlook is clouded by geopolitical tensions. The war in the Middle East has disrupted supplies of key materials, such as helium, which are crucial to chipmaking, and has pushed up energy costs, adding complexity to the industry's prospects.
This protest highlights ongoing labor disputes in South Korea's tech sector, as workers seek a fair share of the profits generated by the rapid growth in artificial intelligence and memory-chip markets.
