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Let's talk about why Samsung is on strike this time. After reading the reasons, I really laughed.
I don't know if everyone still remembers, but Hynix issued sky-high bonuses this year, averaging 6 million per person.
Without comparison, there is no harm; Samsung employees found that they do the same work as Hynix employees, but their bonuses are less than one-tenth of theirs,
and most employees received no bonus at all.
Different pay for the same work directly caused Samsung employees to explode with anger.
Now Samsung employees are demanding that bonuses be linked to operating profits, like Hynix.
Management insists that bonuses should be calculated after deducting taxes, capital costs, and personnel costs.
The current point of contention is that management's requirements can be adjusted through accounting parameters, allowing them to continue paying fewer bonuses when making big money.
The last straw that broke the camel's back is that the union discussed a strike with Samsung, and Samsung management said they would give everyone a paid day off, and that was the end of it.
The union, feeling completely disrespected, planned a large-scale strike on May 21.
The biggest impact of the strike so far is talent loss; usually, after a major strike, core personnel jump ship to Hynix, Micron, and others.
Talent loss could lead to Samsung's future new products falling behind, which is the most terrifying and the reason for today's sharp decline.
This time, Samsung basically failed in negotiations, and the strike is now inevitable.
Both sides fought until 3 a.m., but ultimately, no agreement was reached, even with the Korean government mediating.
On May 21, Samsung employees will start an 18-day strike plan, causing sales losses of $3 billion, and storage prices may further rise.
After the news broke, Samsung dropped 8.7%, and the capital market suspects Samsung's major clients may shift to Hynix, Micron, and others.
I think Samsung should just directly issue bonuses, earn the money now, and wait until the industry downturn to change it back—wouldn't that be easier?