Samsung Techwin Workers Protest + Stock PlungesBy John Honovich, Published Dec 10, 2014, 12:00am EST
The Samsung sell-off is off to a shaky start.
While the US division frantically tries to convince everyone that things are fantastic, worker actions, Hanwha management signals and stock price movements show it is not.
[Update April 2015: more strikes]
"We will fight until the Samsung Group withdraws its decision," the workers said in a press release.
Update January 13, 2015: More protests are scheduled for January 14th and 15th.
The reports also says the workers are now trying to form a union as well.
One report included:
Samsung Techwin CEO Kim said in a message to employees on Monday, "I deeply apologize to every employee who has been hurt and who has felt a sense of loss due to the swap deal."
"Despite everyone's concerns, we guarantee that . . . all executives and employees will retain their jobs."
April 2015: 88.9 percent of Samsung Techwin's union's 2,998 members voted in support of a new strike, according to the Korean Herald.
Hanwha Management Signals
However, stability clearly remains in question.
Another Korean report says "Hanwha Group has pledged to retain for at least one year all of management", citing one Hanwha executive who delivered a weak vote of confidence, "There were rumors that managers would be laid off, which raised concerns, but we will try to retain all staff." (emphasis added)
Since this summer, Samsung Techwin's stock has dropped more than 50%, including a 30% drop in just the last few weeks, putting further pressure and showing the risk the market assigns to the company.
The future for Samsung Techwin is definitely in question.
It is clearly not as rosy as their marketing people are making it out to be. How much change exactly remains to be seen, as the negotiations and changeover continues.
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