Samsung Electronics’ production at a crucial plant in southern India faced disruption for a second consecutive day on Tuesday as hundreds of employees continued their strike demanding higher wages. The labor unrest has prompted top executives to intervene in an attempt to resolve the rare industrial dispute.
The strike-affected facility in Sriperumbudur, near Chennai, is the smaller of Samsung’s two Indian factories. While it primarily produces electronic products rather than smartphones, it still contributes significantly to Samsung’s annual revenue in India. Sources with direct knowledge of the matter, speaking on condition of anonymity, estimate the plant accounts for 20% to 30% of Samsung’s yearly $12 billion revenue in the country.
Outside the factory, striking workers in company uniforms set up tents to shield themselves from the heat, with posters declaring “Indefinite Strike” prominently displayed. Union leader E. Muthukumar confirmed to Reuters that the strike would extend into a third day on Wednesday.
The industrial action has impacted about half of the factory’s daily production since Monday. Workers are pressing for higher wages, improved working hours, and crucially, recognition of a union backed by the Centre of Indian Trade Unions group.
In response to the situation, Samsung’s Southwest Asia CEO, JB Park, and other senior executives have visited the factory to seek a resolution. However, Muthukumar reported that no settlement had been reached during Tuesday’s discussions with management.
Tamil Nadu labor secretary Veera Raghava Rao stated that negotiations between workers and management are ongoing, but there is no clear indication of when the matter might be resolved.
The strike comes at a critical time for Samsung, just ahead of India’s festive season when consumer electronics sales typically surge. Prabhu Ram, a vice president at Cybermedia Research, noted, “A strike at this point puts a spanner in Samsung’s production ramp-up ahead of the all-important festive season sales beginning October.”
Workers’ demands include equal remuneration for those with the same length of experience. One anonymous employee stated, “If they (Samsung) had given us a living wage and treated us with respect, we wouldn’t have thought of joining a union.”
The labor unrest in India follows similar actions by Samsung workers in South Korea, where union members held strikes in July and August demanding higher wages and benefits.
As the situation unfolds, approximately 800 workers have signed a register outside the factory to record their protest. The strike has drawn attention from local political leaders, who attended Tuesday’s protest in support of the workers’ concerns.
Samsung, which competes with companies like LG Electronics in India’s consumer electronics market, has not yet provided detailed comments on the ongoing situation beyond stating that it actively engages with workers to address grievances and comply with all laws and regulations.
REUTERS
