India’s leading consumer electronics company Samsung Electronics is grappling with a rare bout of labour unrest at one of its key production plants in Sriperumbudur, near Chennai. For the second consecutive day, hundreds of employees at the factory have been on strike, demanding higher wages, better working hours, and the recognition of a new workers’ union backed by the Centre of Indian Trade Unions (CITU).
The strike, which began on Monday, has disrupted production at the factory, which employs about 1,800 people. Although the plant does not manufacture smartphones, it contributes significantly to Samsung’s annual revenue in India, generating 20% to 30% of the company’s $12 billion earnings in the country, news agency Reuters quoted sources familiar with the matter.
On Tuesday, union leader E Muthukumar confirmed that the strike would extend into a third day as workers and management failed to reach an agreement during ongoing negotiations.
The timing of the strike is particularly critical for Samsung, as it comes just ahead of India’s lucrative festive season, which kicks off in October. During this period, consumer electronics sales typically surge as shoppers take advantage of special discounts and offers. Industry experts are concerned that the strike could hamper Samsung’s ability to ramp up production ahead of this important sales window.
“A strike at this point puts a spanner in Samsung’s production ramp-up ahead of the all-important festive season sales,” said Prabhu Ram, Vice President at Cybermedia Research.
The strike has already affected approximately half of the plant’s daily production, with many workers staying away from their posts. Protesters have set up tents outside the factory, and posters reading “Indefinite Strike” are displayed.
Union recognition and worker demands
Central to the workers’ grievances is the demand for Samsung to formally recognise the formation of a labour union. The workers are also pushing for equal wages for employees with similar years of service, claiming that current pay structures are unequal and unjust.
“If they (Samsung) had given us a living wage and treated us with respect, we wouldn’t have thought of joining a union,” an anonymous worker outside the factory told Reuters.
While Samsung has not publicly commented on the strike, a spokesperson for the company said on Monday that the company was “actively engaged with workers to address any grievances they may have” and that it complied with all applicable laws and regulations. However, as of Tuesday, no agreement had been reached, and the strike showed no signs of ending soon.
The strike mirrors recent labour unrest Samsung has faced globally. In South Korea, members of Samsung Electronics’ largest workers’ union held a strike earlier this year, demanding better wages and benefits, although production was not disrupted.
From: financialexpress
Financial News
