Fears of Samsung strike ease after court ruling

{"text":[[{"start":6.7,"text":"A South Korean court has granted Samsung Electronics an injunction that limits the scope of planned strike action at the world’s largest memory chipmaker, easing concerns about potential disruption to production. "}],[{"start":18.35,"text":"The ruling came as Samsung held last-minute talks with the union to avert a walkout this week that South Korea’s prime minister warned could wreak havoc on the economy."}],[{"start":28.3,"text":"The Suwon District Court on Monday partially accepted Samsung’s injunction request against two unions, in effect restricting their planned 18-day walkout due to start on Thursday. "}],[{"start":39.2,"text":"The court said staffing levels needed for safety protection, facility damage prevention and product quality maintenance must remain at normal levels during industrial action."}],[{"start":49.75,"text":"Samsung shares rose more than 4 per cent on Monday following the decision. The stock has more than doubled this year."}],[{"start":55.95,"text":"Judge Shin Woo-jung also barred the pan-Samsung union and its leader, Choi Seung-ho, from occupying or locking company facilities and obstructing workers from entering them. The union faced fines of Won100mn ($74,000) a day if it breached the order."}],[{"start":75.15,"text":"The legal restrictions are likely to weaken the strike threat and add pressure on workers, lawyers said. "}],[{"start":80.85000000000001,"text":"“The ruling will significantly weaken the scope of the strike and the negotiating power of the unions,” said Hyeseop Sim, a corporate lawyer. “Samsung’s chip production is therefore unlikely to be disrupted significantly.”"}],[{"start":94.2,"text":"Workers want Samsung to scrap an existing cap on bonuses and allocate 15 per cent of operating profit to employee bonuses, as well as formally incorporate the terms into employment contracts."}],[{"start":null,"text":"

"}],[{"start":106.55,"text":"Sim added that the “rare” ruling against industrial action reflected the court’s consideration of the semiconductor industry’s unique characteristics, as chip production takes some time to restart once suspended."}],[{"start":120.1,"text":"The decision also came after President Lee said in an X post that “labour should be respected as much as business and corporate management rights”, but did not directly mention Samsung. "}],[{"start":131.1,"text":"Lee added that workers deserve fair compensation, but that the rights of companies and shareholders must also be considered. The union has estimated that a fully fledged strike could cost Samsung up to Won30tn."}],[{"start":146.29999999999998,"text":"His remarks highlight a debate over how wealth generated by the AI boom should be shared between workers and shareholders, amid widening disparities between a handful of high-growth sectors and the rest of the economy."}],[{"start":157.64999999999998,"text":"Lee’s policy chief said last week that South Korea should redistribute AI-driven tax windfalls to citizens, as Samsung and SK Hynix are forecast to report combined operating profits of about Won600tn this year — equivalent to nearly a quarter of the Korean economy."}],[{"start":175.79999999999998,"text":"Samsung’s market value this month topped $1tn earlier, while shares in SK Hynix have almost tripled this year as the semiconductor boom points to a prolonged supercycle amid worsening supply shortages."}],[{"start":190.2,"text":"Prime Minister Kim Min-seok on Sunday urged Samsung and the union to reach a deal, calling Monday’s talks their “last chance”. "}],[{"start":198.79999999999998,"text":"“If the strike becomes a reality, the economic damage we would face would be unimaginable,” he said."}],[{"start":204.99999999999997,"text":"The union said in response: “Is the Government a mediator, or Samsung’s spokesperson? The logic used today against Samsung workers could tomorrow be turned against all manufacturing workers.”"}],[{"start":223.54999999999998,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1779091179_5874.mp3"}