Sep 13, 2024 08:16 PM IST
The plant, which makes televisions, refrigerators and washing machines, contributes between 20% and 30% of Samsung’s annual $12 billion revenue in India
Workers at Samsung Electronics’ southern India plant will remain on strike until their demands for better wages and working conditions are met, union leaders said, as output at the consumer appliances unit was disrupted for a third straight day.
The industrial unrest at the plant in Sriperumbudur, near the city of Chennai, is one of the biggest such strikes in recent years in India.
The plant, which makes products such as televisions, refrigerators and washing machines, contributes between 20% and 30% of Samsung’s annual $12 billion revenue in India, a key growth market for the company.
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“The strike will continue until a settlement is reached, with the next round of talks (planned) on Friday evening,” union leader E. Muthukumar told Reuters.
“As things stand, the strike will continue till Friday.”
The Samsung factory is next to units of other global giants such as Foxconn and Dell in an area popular for automobile and electronics manufacturing.
On the first day of the strike on Monday, 50% of daily production was disrupted, while 30% was hit on Tuesday as some temporary workers have been roped in to keep production going, said a source with direct knowledge of the matter.
The workers want Samsung to recognise their union, as well as increase their wages and improve their working hours. Samsung Southwest Asia CEO, JB Park, and other senior executives have travelled to the factory to try to resolve the protests.
“They (Samsung) will soon have to talk to us, just like they had to engage with the Korean union there,” Muthukumar said.
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In July and August, the 36,500 members of Samsung Electronics’ biggest worker union in South Korea demanded higher wages and benefits, striking for several days, but there was no impact on production there.
South Korea-based Samsung, which is India’s biggest consumer electronics company, did not respond to a request for comment. A spokesperson for Samsung India said on Monday that it actively engaged with workers “to address any grievances they may have and comply with all laws and regulations”.
In India, the strike comes ahead of a critical festive season when consumers step up purchases and companies dole out discounts.
According to Samsung employees outside the factory, the company has so far not agreed to recognise the union backed by the local labour group, the Centre of Indian Trade Unions (CITU).
Many workers wearing Samsung’s blue uniform shirt, and red CITU caps, were seen sitting inside a makeshift tent put up near the factory, which employs roughly 1,800 people.
Meals were arranged by workers and being distributed on Wednesday afternoon.
Earlier in the morning, employees chanted together outside the factory: “We will stand together and secure a win.”
There has been no labour unrest at Samsung’s other Indian plant in the northern state of Uttar Pradesh, which makes smartphones.
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