Samsung faces labour crisis as chairman issues rare apology

Samsung Electronics Chairman Jay Y. Lee has issued a public apology to customers and the general public over an escalating wage dispute with the company’s labour union, as the risk of a potential strike grows in South Korea, News.Az reports, citing Reuters.

In his first public comments on the dispute, Lee said he “sincerely apologises to customers around the world for causing anxiety and concern due to issues within our company,” and added that he “deeply bows in apology to the public.”

The apology comes after pay negotiations between management and the labour union broke down this week, prompting South Korea’s labour minister to meet Samsung Electronics executives on Saturday.

The minister urged the company to actively engage in dialogue to resolve the dispute and prevent further escalation.

Senior South Korean government officials, including the prime minister and finance minister, have also expressed concern over the situation. They warned that a strike at Samsung Electronics should be avoided, stressing potential risks to economic growth, exports and financial market stability.

The breakdown of government-mediated negotiations has intensified fears of industrial action at the world’s largest memory chipmaker. The company’s clients include major global technology firms such as Nvidia, AMD and Google, raising concerns about potential supply chain disruptions if a strike proceeds.

The labour union stated on Friday that it remains committed to launching a planned strike next week, despite Samsung Electronics proposing renewed pay discussions without conditions.

The dispute also draws attention to the company’s recent labour history. In 2020, Lee apologised for the actions of executives involved in undermining labour union activities and pledged to ensure stronger protection of workers’ rights at the tech giant. Several current and former executives within the Samsung Group have since been investigated or convicted in related cases.

The unfolding situation places pressure on both corporate leadership and the South Korean government, which is seeking to prevent disruption at one of its most strategically important export-driven industries.

News.Az 

By Nijat Babayev