Samsung Electronics’ Union Threatens First Ever Walkout Next Week 

People walk past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 30, 2024. (AFP)
People walk past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 30, 2024. (AFP)
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Samsung Electronics’ Union Threatens First Ever Walkout Next Week 

People walk past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 30, 2024. (AFP)
People walk past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 30, 2024. (AFP)

Samsung Electronics' union in South Korea will begin escalating strike action next week by staging the first ever walkout over demands for higher wages, union officials said on Wednesday.

The union, which has about 28,000 members, or more than a fifth of the company's total workforce, said it will stop work for one day on June 7 as part of broader protest measures.

The announcement was made by union officials at a live-streamed press conference, where they held a banner which read: "We can no longer tolerate labor repression, union repression."

If the union members collectively take the day off next week, it would mark the first ever walkout by Samsung Electronics workers.

Workers have been intermittently participating in protests in recent weeks outside the company's offices in the capital city Seoul as well as outside of its chip production site in Hwaseong, south of Seoul.

Responding to a decision by the company to increase wages this year by 5.1%, the union has previously said that it wanted an additional day of annual leave as well as transparent performance-based bonuses.

On Wednesday, the union accused the tech giant of failing to bring a compromise plan to negotiations held the previous day.

Samsung Electronics said in a statement on Wednesday: "We will sincerely engage in discussions with the union."

A union official defended the decision to take industrial action at a time when some parts of Samsung's business are underperforming.

"The company has been saying they are facing crisis all along for the past 10 year," a union official told reporters, but added that the firm should not use it as an excuse not to meet its demands.

The union said all company sites across South Korea would be affected by its June 7 action.

The strike announcement comes as Samsung appears to be faltering in some areas, including cutting-edge semiconductor chips.

Samsung last week replaced the head of its semiconductor unit saying a new person at the top was needed to navigate what it called a "crisis" affecting the chips industry.

More than 2,000 unionized workers of the South Korean technology giant gathered in Seoul last week to hold a rare rally to demand better wages.

The union has seen a rapid rise in membership after Samsung Electronics in 2020 pledged to put an end to its practices of discouraging the growth of organized labor.

Shares of Samsung Electronics were trading down 2.1% on Wednesday, compared with the benchmark KOSPI's 1.3% fall as of 0458 GMT.



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.