In Short:
Hundreds of workers at Samsung’s factory near Chennai, India, have started an indefinite strike to demand higher wages and better working conditions. This strike affects around half of the factory’s production. It follows a similar strike by Samsung’s main union in South Korea. Samsung plans to use contract staff to minimize disruptions during the festive season in India, a key market for the company.
By Praveen Paramasivam and Dhwani Pandya
CHENNAI: A significant labor strike has commenced at a Samsung Electronics facility located in southern India, where hundreds of workers have initiated an indefinite strike seeking higher wages. This action is already impacting production levels at the plant, as reported by a union leader to Reuters.
Background of the Strike
This strike follows a recent four-day strike conducted by Samsung Electronics’ largest union in South Korea, which occurred in August. That protest was also aimed at securing increased wages and bonuses after negotiations with management failed to yield a satisfactory outcome.
Impact on Production
Samsung employs nearly 2,000 individuals at its Sriperumbudur facility, which specializes in manufacturing refrigerators and washing machines. According to an industry source with direct knowledge of the situation, production has been seriously affected, with approximately half of the daily output disrupted due to many workers opting not to report for duty.
Union Demands
E. Muthukumar, the leader of the Samsung India union, noted that numerous workers, clad in their company uniforms, have gathered outside the plant to advocate for better wages and improved working conditions. Muthukumar stated, “The strike will go on,” although he did not specify a duration for the protest.
Company Response
A representative from Samsung India commented via email, asserting that the company is committed to engaging with workers to resolve any grievances and is in compliance with all relevant laws and regulations. They also emphasized that Samsung aims to maintain supply continuity and mitigate consumer disruption.
Strategic Importance of Indian Operations
India represents a key growth market for Samsung. Established in 2007, the Sriperumbudur facility is one of two operational plants in India, the other being located in Noida, Uttar Pradesh, where smartphones are manufactured. In preparation for the festive season, known for escalating electronic sales, Samsung has reportedly deployed contract workers to counter any major production challenges arising from the strike.
