Hundreds of Samsung Electronics employees went on a strike at a plant in Tamil Nadu for a second day on September 10 to demand higher wages, disrupting operations at the South Korean giant. A union leader said that the protest will continue for the third day (on September 11) as the mediation talks between the striking workers and the management did not lead to a settlement.
The workers put up tents outside the factory in Sriperumbudur, near Chennai, as they prepared to boycott work. They also raised posters that read: “Indefinite strike from 09.09.2024...Discuss and solve demands from the labour union with union officials.”
“We are striking for the second day,” said union leader E. Muthukumar. A spokesperson for Samsung said on September 9 that the company actively engages with “workers to address any grievances they may have and comply with all laws and regulations”. Sources told Reuters that the CEO of Samsung Electronics India is visiting the factory to find a resolution to the ongoing labour protests.
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The protests come after the Samsung Electronics union in South Korea held a strike for several days in July and August and has been preparing for a long-term strategy as the union has not reached an agreement with the management.
Fall in production
Around half of the daily production was affected at the factory when many workers did not turn up for work on September 9. The protesting workers are demanding higher wages and better working hours, and want their union to be recognised by the company.
The plant in Sriperumbudur, which was opened in 2007, is one of the two Samsung factories (the other one is in Uttar Pradesh) in India. Two sources with direct knowledge said the factory accounts for 20 to 30 per cent of Samsung’s annual $12 billion revenue in India, a country the company counts as a key growth market. Samsung employs around 1,800 workers at the plant which makes consumer electronic items such as refrigerators, washing machines, and TVs. In 2022, the company said it would invest Rs.15.88 billion ($189.15 million) in Tamil Nadu to make a compressor plant for refrigerators.
Indian operations
Samsung Electronics started its operations in India in 1995 and has managed to open more than 2,00,000 retail outlets across the country. Samsung was the leading player in India’s smart TV market during the first quarter of 2024, with a share of 16 per cent of total shipments. Its last reported India net profit was $410 million.
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The technology market research firm Counterpoint estimates that Samsung smartphones, their biggest revenue generator in India, have more than a quarter of the country’s market for the devices by value. Samsung makes most of these in India, for a share of 18.1 per cent in total smartphone shipments countrywide during the second quarter. The company, led by Chief Executive J.B. Park, also makes many consumer electronic products and runs three research and development facilities—two in Noida and one in Bengaluru—to develop products.
(with inputs from agencies)
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