Shin Je-yoon, Chairman of the Samsung Electronics Board. Photo courtesy of Samsung Electronics
Samsung Electronics’ (005930.KS) board of directors has officially expressed concern that both labor and management could suffer significant damage from the ongoing dispute, as the company’s union has warned of a general strike over performance bonuses. If the strike disrupts semiconductor production and deliveries, the company could lose the trust of Big Tech customers including Nvidia, potentially undermining its overall competitiveness.
Shin Je-yoon, chairman of Samsung Electronics’ board, warned employees through the company’s internal bulletin board on Wednesday that “if the situation worsens, both labor and management will lose their footing.” He added that the dispute “could seriously harm the national economy through declining business competitiveness, loss of customer trust, and losses for shareholders and investors.”
Shin explained the basis for his concerns, saying that “if development and production are disrupted and delivery deadlines are not met, the company will lose its fundamental competitiveness and may lose market dominance as customers defect to competitors.” He also stressed that a decline in Samsung Electronics’ performance would hurt shareholders, investors and local communities, adding that “tens of billions of dollars in exports and tens of trillions of won in tax revenue could decrease, and the resulting rise in the exchange rate could reduce gross domestic product (GDP), seriously affecting the national economy.”
Shin urged employees and the union to resolve the issue through dialogue rather than a strike. “At a time when the company faces unlimited competition, all employees must come together for sustainable growth and resolve problems through sincere dialogue,” he said. “Let us work together so that the current conflict can serve as a foundation for building a more constructive labor-management relationship in the future.”
“I will also do my best to solve the problem by putting our heads together with management and gathering wisdom,” Shin added. “As chairman of the board, I feel a heavy sense of responsibility and apologize for causing concern.”
The Joint Struggle Headquarters, led by Samsung Electronics’ Super Corporate Union, has announced it will launch a general strike on the 21st of this month.