In a historic move, thousands of Samsung Electronics workers have begun a three-day strike, marking a significant shift in South Korea's labour landscape.

The National Samsung Electronics Union (NSEU), representing nearly a quarter of the tech giant's domestic workforce, initiated the industrial action on Monday to demand better pay and working conditions.

The strike, taking place at Samsung's facilities in Hwaseong, south of Seoul, sees approximately 6,540 workers walking out, according to union officials. This figure includes staff monitoring automated production lines, potentially impacting operations at the world's largest memory chipmaker.

Union president Son Woo-mok told Reuters that whilst participation may seem low, it reflects the nascent nature of organised labour at Samsung. "Our union is still young compared to others," Son explained, citing insufficient time to educate members about labour issues.

The NSEU is pushing for increased wages, an extra day of annual leave for union members, and reforms to the employee bonus system. Union vice president Lee Hyun-kuk warned of potential further strikes if Samsung fails to improve its proposals.

Despite the industrial action, Samsung maintains that production has not been disrupted. The company's share price remained relatively stable, even climbing to its highest point since January 2021 earlier in the session.

This strike follows Samsung's 2020 pledge to cease discouraging unionisation, a practice long associated with the conglomerate. The growing influence of organised labour comes at a critical juncture for Samsung, as it grapples with fierce competition in the artificial intelligence chip market.

The union's expanding voice is demanding attention just as Samsung faces challenges in the AI sector. Union officials have criticised the company's slower development of high bandwidth memory chips, which are crucial for AI processors.

Despite these hurdles, Samsung recently projected a substantial increase in its second-quarter operating profit, buoyed by rebounding chip prices driven by the AI boom.

As the strike unfolds, all eyes are on how Samsung will navigate this new era of labour relations whilst maintaining its position as a global tech leader. The outcome of this industrial action could set a precedent for future negotiations between the tech giant and its workforce.

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