In Short:
Samsung India has reached an agreement with striking workers to improve their working conditions. Starting October 2024, workers will receive a monthly incentive of Rs 5,000 until March 2025. The company also plans to expand air-conditioned bus services, increase family events, and enhance medical facilities. Additional benefits include support for families in case of an employee’s death and gift cards for newborns.
Chennai: On Monday, Samsung India formalized a Memorandum of Agreement (MoA) with a segment of its workforce, addressing several key demands in a bid to resolve the ongoing strike that began on September 9, 2024. The agreement marks a significant step towards collaboration aimed at alleviating the challenges encountered by employees.
Commitment to Improving Working Conditions
The company emphasized its commitment to enhancing the working conditions for its employees, stating that it will actively collaborate with a workmen committee to implement initiatives designed to improve wage competitiveness. Notably, Samsung will introduce an interim special incentive, termed the productivity stabilization incentive, amounting to Rs 5,000 per month. This incentive will be effective from October 2024 through March 2025, with payment details to be finalized in consultation with the workmen committee.
Future Wage Negotiations
The MoA indicates that this special incentive will be integrated into the annual wage increase for the fiscal year 2025-26, which will also be determined in collaboration with the workmen committee during wage negotiations.
Expanded Amenities and Initiatives
In further support of its workforce, Samsung has agreed to expand air-conditioned bus services from the current five routes to a total of 108 routes by next year. Additionally, the company plans to increase the frequency of family invitation events from four to six times annually, providing each participating family with a gift valued at Rs 2,000.
Support for Employee Families
Recognizing the importance of employee welfare, Samsung has pledged to provide an immediate assistance of Rs 1 lakh to the family of any employee who passes away while in service, ensuring their immediate needs are met.
Enhancements in Employee Facilities
The company will also introduce a new medical room within the compressor building, diversify cafeteria offerings, increase meal allowances, upgrade break rooms and restrooms, and replace outdated lockers. Furthermore, Samsung will install canopies between buildings and enhance vacation availability for employees. As a gesture of goodwill, the company will distribute a gift card worth Rs 2,000 to workers upon the birth of a child.
