A group of over 1,000 workers at Samsung Electronics’ factory in southern India has turned down the company’s recent settlement proposal concerning wage increases, marking the continuation of their sit-in protest into its second month. The strike represents one of the most significant labour disputes in India in recent years, casting a shadow over Prime Minister Narendra Modi’s efforts to attract foreign investment and bolster local manufacturing.
Protests Disrupt Production
Since September 9, workers have been protesting in a makeshift tent near the factory close to Chennai, Tamil Nadu. Their demands include higher wages and formal recognition of their union. The facility is crucial to Samsung’s operations, contributing about one-fifth of the company’s $12 billion sales in India during the 2022-23 fiscal year.
Settlement Offer Lacks Union Recognition
This week, Samsung proposed a settlement that included a monthly incentive of 5,000 rupees (approximately $60) until March, improved transportation with air-conditioned buses, a more varied cafeteria menu, and a gift card valued at $24 for childbirth. However, the Centre of Indian Trade Unions (CITU), which supports the striking workers, rejected the offer. A. Soundararajan, the state president of CITU, emphasized that the agreement fails to acknowledge their union.
“We will continue striking and intensify our protests to exert pressure on the government,” Soundararajan stated in an interview.
Company Response and Government Intervention
Samsung responded by stating that it has signed an agreement and will engage with workers to address their concerns but did not comment further on the ongoing strike. Meanwhile, Tamil Nadu’s industries minister, T.R.B. Rajaa, revealed that Samsung had agreed to meet 14 of the workers’ demands and expressed willingness to discuss additional issues, urging the workers to return to work.
Wage Disparities Highlighted
The striking workers currently earn an average monthly salary of 25,000 rupees (around $300) and are requesting a raise to 36,000 rupees over three years. According to CITU, Samsung claims that the average monthly salary for full-time manufacturing workers at the plant is nearly double that of comparable positions in the region.
The plant employs approximately 1,800 permanent workers and manufactures refrigerators, televisions, and washing machines. It is one of Samsung’s two factories in India; the other, located in Uttar Pradesh, focuses on smartphone production and has not faced any labour disputes.
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