In Short:
As the festive season approaches, Samsung is addressing a strike at its Sriperumbudur factory, involving 1,100 workers demanding better wages and union rights. To maintain production, Samsung has utilized 700 non-striking workers and deployed 500 others, bringing output to 85-90%. The company issued a notice regarding the strike’s legality and emphasized workers’ welfare, offering competitive salaries and support for grievances.
Samsung Navigates Strikes Ahead of Festive Season
The festive season is just around the corner, and **Samsung**, the tech giant hailing from Korea, is stepping up to ensure that a current strike by employees at its **Sriperumbudur** consumer durable factory does not throw a wrench in its production plans. The company is keeping operations running smoothly with the help of around 700 dedicated workers who are continuing to report for duty.
A Closer Look at the Strike
Currently, about 1,100 employees out of a total workforce of 1,800 have been on strike for two weeks, primarily voicing demands for wage adjustments and the right to form a union. While making strategic use of the non-striking workforce, **Samsung** has also brought in an additional 500 workers—comprising apprentices, contract laborers, and staff from various other departments like logistics and quality control, according to sources from BusinessLine.
Production Recovery Progress
Initially, the strike hit production hard, with a 50% reduction on the first day. However, the resilient team managed to bounce back, increasing production levels to 60% on day two. As a result of various initiatives and teamwork, factory output has now reached an impressive 85-90%, and sources confirm that it is expected to hit 100% later this week.
Financials and Legal Notices
In fiscal year 2023, **Samsung** generated an astonishing revenue of around ₹19,000 crore from sales of home appliances and televisions produced at the **Chennai factory**, as detailed in documentation submitted to the Registrar of Companies.
Last week, the company issued a show cause notice, labeling the workers’ actions as “an illegal strike” starting from September 9, 2024. The management has proposed an 8-day wage duty, stating clearly: “You shall not be entitled to wages from September 9, 2024, to the date you report back to work, on a ‘No Work, No Pay’ policy basis.”
Consequences of Non-Compliance
The notice further warned strikers: “If you fail to report to work within four days from the receipt of this notice, you are directed to explain within seven days why you should not be dismissed from service.” After this serious communication, **Samsung** successfully brought back 70-80 striking workers, according to inside sources.
Samsung’s Commitment to Worker Welfare
A spokesperson for **Samsung India** emphasized the company’s commitment to worker welfare, noting, “At **Samsung India**, the welfare of our workers is our top priority. The average monthly salary of our full-time manufacturing workers at the Chennai plant is 1.8 times higher than similar workers in the region. Our employees are also eligible for overtime pay and various allowances, and we strive to maintain a workplace that meets the highest standards in health, safety, and welfare.”
In closing, the spokesperson expressed, “We are eager to engage with our workers to address their grievances so that they can return to work as soon as possible.”
