If you think back to the moving of the supply system from the US to China and other countries around the world, there were many reasons given. The people worked hard, but accepted lower pay rates. The supply system transportation had greatly improved, and it is always amazing to walk around stores such as Walmart, the items made in China, put in a container, placed on a ship, go across the seas to a port then either put on rail or a truck and eventually to go to a store at a very low price. How does the company make money? From a consumer point of view, it does not matter. One of the reasons why the system worked, was the low union rate in China and other countries. But every once in a while, unions actually exist in other countries.

In an article by Jin Yu Young and John Liu of the New York Times News Service, some workers at Samsung electronics went on 3 day strike. The Nationwide Samsung Electronics Union represents more than 31,000 workers or a quarter of the work force at Samsung Electronics.

Samsung is South Korea’s biggest private employer and has been one of the world’s largest maker of memory chips, which helps computers and other electronics equipment store information. The company is also a leading manufacturer of logic chips, which makes computers run. The number manufacturer is Taiwan Semiconductor Manufacturing Co.

For decades, Samsung was known for its aversion to organized labor and unions. Only in the past few years has Samsung allowed unions.

Linking to dividend paying stocks, most companies do not have unions for reasons. When they were founded the founder did not want unions and often when companies are small and medium sized everyone tends to know everyone one. As the companies expand, the linkages fall away and people want a larger share of the pie, assuming the company is profitable or the if the founders are living a lifestyle different than the workers. There are many reasons, however once a union is in place it is up to management to work with the union. For your investments how are labor relations?

There are more questions than answers, till the next time – to raising questions.