Samsung avoids employee strikes as union approves wage hike

The National Samsung Electronics Union is one of the largest worker unions in all of South Korea. It has more than 36,000 members which account for almost 30% of Samsung Electronics' entire work force in its home country.

These members have gone on strike once before as negotiations with Samsung over wage hikes dragged on. Samsung has avoided another strike this time around as the union has voted to approve the proposed wage hike.

Samsung avoids another troublesome strike

Samsung Electronics had proposed a 5.1% pay hike for this year. The union's members have voted in favor of this increase, thereby eliminating the risk of strikes for the company. It would also be happy that this issue is no longer a cause for distraction, as Samsung Electronics finds itself amid several business challenges.

The National Samsung Electronics Union went on a strike last year to push the company for better pay and working conditions. It was quite a historic move as the union went on strike for the first time in 55 years. It didn't cause a lot of disruption, though, as it was only the workers from HQ in Seoul that went on strike, not those at Samsung's vital production facilities.

Samsung did say back then that the strike didn't disrupt its production. It's managed to avoid such an outcome entirely this year.

It's not just the wage increase that union members are walking away with. Samsung is also going to provide them with points to buy its products. They'll also receive 30 shares in the company. The proposal seems to have been generous enough for the vast majority of the 36,000-strong union to vote in favor of.

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