Samsung workers strike in Sriperumbudur. What’s driving India’s largest electronics workers’ protest?

Over 1,000 employees demand higher wages and union recognition, testing labour relations in the country’s burgeoning tech manufacturing sector.

Published : Sep 19, 2024 16:37 IST

Samsung workers take part in a strike demanding higher wages and better working conditions at Sriperumbudur, Tamil Nadu, on September 16. | Photo Credit: PTI

“Look at us, we are here again!” exclaimed Suresh*, a Samsung worker arriving at a makeshift tent in Echoor village, Tamil Nadu. It was September 17, the ninth day of the indefinite protest led by the Samsung India Workers Union-Centre of Indian Trade Unions (SIWU-CITU) against low wages and poor working conditions.

Adjusting his red union cap, Suresh recounted being one of 118 workers detained by police the previous day for attempting to march to the District Collector’s Office. Despite this setback, 600 workers had gathered by 10 am, their resolve unshaken. The police termed it a “preventive arrest”, releasing the workers on the evening of September 16.

Since September 9, over 1,000 Samsung India Electronics workers have been protesting in Sriperumbudur, Tamil Nadu, drawing global attention as a significant labour movement. This factory is one of two Samsung plants in India, with the other located in Noida, Uttar Pradesh.

SIWU members have organised in Echoor, a kilometre from the Samsung plant at Sunguvarchatram, Kancheepuram. The facility, which produces televisions, refrigerators, and washing machines, contributes nearly a third of Samsung Electronics’ annual $12 billion revenue from India.

Raja* (41), an 11-year Samsung veteran, observed, “People talk about rising GDP and inflation, but my economic situation hasn’t improved since I started working here.”

Workers in the same department are categorised into grades A through E for increments. The highest monthly raise is Rs.3,000, but most workers with nearly a decade of experience still earn less than Rs.30,000 per month, said the protesting workers. Raja explained that enrolling his two children in a good school costs over Rs.1 lakh annually—a quarter of his yearly salary. “I’m caught in a cycle of loans,” he lamented.

At the Echoor protest site, workers queue to mark attendance while others, seated on tarpaulins, applaud those detained the previous day. Communist songs from Tamil films resound through loudspeakers, met with continuous applause.

On August 19, SIWU sent a strike notice to Samsung India Electronics’ executive manager and management. The notice, sent over 14 days before the strike in compliance with the Industrial Disputes Act, expressed disappointment over the company’s unwillingness to address union demands.

Key SIWU-CITU demands include providing a three-year salary increase to Rs.36,000 (70 per cent in 2024, 15 per cent in 2025, and 15 per cent in 2026), recognising the union, providing Rs.500 annual service weightage, increasing shift allowance from Rs.150 to Rs.250, extending paternal leave from three to seven days, and equalising pay for workers with the same qualifications and duties. These demands were initially presented to Samsung management on July 11, 2024.

Also Read | Samsung India plant workers in Tamil Nadu boycott work for better wages

Workers challenge public perceptions of protests, stressing the financial sacrifices they make to advocate for their rights. They view these losses as necessary steps in their struggle for fair treatment.

SIWU’s formation

Samsung India Electronics Private Limited, established in 2007, has operated without a union for 16 years. The SIWU, a CITU-backed trade union formed at Samsung in July 2023, awaits official registration and company recognition. Despite the Government of India’s 45-day time limit for trade union registration under the Trade Unions Act, 1926, over 90 days have passed without resolution. The CITU, a powerful national union, boasts over six million members.

Security personnel stand guard at Samsung India’s plant in Sriperumbudur on September 11, 2024, as workers stage protests to demand higher wages, better working conditions, and recognition of their union.  | Photo Credit: R.Satish Babu/AFP

The SIWU’s formation coincided with the National Samsung Electronics Union’s protest for better pay in Seoul, South Korea, involving nearly 30,000 workers. In its inaugural general body meeting, the SIWU passed a resolution supporting the Seoul protesters.

Initially, 1,455 Samsung workers joined the SIWU, with 150 more following suit. E. Muthukumar, CITU leader and SIWU president, reports that 1,550 of Samsung’s 1,723 workers are now union members, all permanent employees.

The CITU has a long-standing presence in Sriperumbudur’s industries, including Hyundai, JK Tyres, Apollo, Asian Paints, PPG Asian Paints, Britannia, and Flextronics Technologies.

S. Kannan, Tamil Nadu CITU deputy general secretary, explains: “Companies rarely recognise unions willingly. Recognition follows workers’ struggle. While India has laws for union formation, there’s no mandate for company recognition. Multinational corporations exploit this gap.”

The case so far

The strike’s timing is critical, coinciding with festivals like Dussehra, Diwali, Christmas, and New Year—periods of typically high production for home appliances. Muthukumar told Frontline that the protest had reduced Samsung’s production by 80 per cent. He added that only the production of television sets continues as usual because they are merely assembled at the plant. For other products, the impact is significant: compressor production has dropped from 13,800 to 8,000 units per day for two days; refrigerator production has fallen from 10,000 to 700 units per day; and washing machine production has decreased from 3,000 to 1,400 units per day. Currently, only 20 per cent of the workforce is operating at the plant. “Depending on the production needs for particular appliances, workers are moved between departments daily,” he explained. He also noted that women workers, most of whom have over 14 years of experience, earn an average of Rs.45,000 per month.

During a CITU leader’s address, it was announced that 50 per cent of female workers in the TV assembly department had boycotted work on September 17, supporting male protesters and condemning police actions on September 16.

Kannan reported three inconclusive rounds of discussions: with the Deputy Commissioner of Labour, the Law Minister, and the Labour Secretary. He noted that the lack of tripartite talks led to communication gaps, as the Labour Secretary met the union and company separately.

E. Muthukumar, CITU leader and SIWU president addressing the workers on September 17. | Photo Credit: Siddarth Muralidharan

The protest gained prominence following large-scale arrests of workers and their leader, and the failure to reach a solution despite interventions by the Labour Minister and Secretary. Tamil Nadu Labour Minister C.V. Ganesan told Frontline, “The government supports workers. Chief Minister M.K. Stalin believes the government must address workers’ issues in any company. We’re facilitating discussions between both parties to reach an amicable solution.” He referenced the 2021 Foxconn protest, where he spent two days on-site advocating for workers’ rights. Ganesan also mentioned the government’s recent Rs.706 crore investment in women workers’ hostel facilities.

Protest march and ‘preventive arrest’

On September 13, union members sought police permission for a march to the Kancheepuram District Collector’s Office. Initially granted, the permission was revoked on September 15 at noon. Muthukumar explained, “The late notice left us unable to inform all workers not to come.”

The following day, as Muthukumar arrived at the CITU district committee office, police led by the Deputy Superintendent confiscated his cell phone and scooter, arresting him for “preventive” reasons. He was neither produced in court nor formally remanded. His family remained uninformed of his whereabouts as he was moved from Magaral Police Station to the SP Office for questioning. He was eventually released on orders from higher authorities.

The planned march from Theradi to the District Collector’s Office never materialised. Muthukumar described the police actions as “shocking,” noting arrests of workers from buses, hotels, and public spaces. Part of the protest tent in Echoor was also dismantled by the police. Approximately 118 workers were detained in a private hall before being released that evening, with cases filed against them.

CITU General Secretary Tapan Sen wrote to the Tamil Nadu Chief Minister, urging the release of detained Samsung workers and the protection of their constitutional rights. Sen accused Samsung of “blatantly violating” workers’ rights under the Trade Union Act, 1926, Industrial Dispute Act, 1947, and ILO Conventions No. 87 and 98.

Strike-breaking tactics

Ramesh* (35), an 8-year Samsung employee, revealed management’s strike-breaking efforts: “They’re sending ‘snacks kits’ with fruits and chocolates to our homes, calling and visiting family members to discourage strike participation.” Workers shared images of these gifts on WhatsApp.

Kannan elaborated, “The company tries to lure workers away from the union with one-time bonuses and other benefits. But Samsung workers remain unconvinced by the company’s committee, rejecting invitations to join.” Affirmed Babu* (29), “We’re pressured to join the company committee, but we know it won’t serve our interests. We’re committed to having our own union.” Muthukumar added, “Only a union can replace a union. A committee is not an alternative.”

Workers view the committee as a company-controlled entity, believing only a union can effectively facilitate collective bargaining. Reports emerged of company representatives intimidating workers’ families, warning of job losses for protest participants. Some workers received personal calls offering Rs.1,000 extra for a day’s work to return.

Veera Raghava Rao, Secretary of Tamil Nadu’s Labour Welfare and Skill Development Department, stated, “We facilitate conciliation between management and workers, providing more time if opinions differ.” Atul Anand, Principal Secretary/Commissioner of Labour, declined to comment on the protest. Samsung India’s spokesperson responded to Frontline: “Our workers’ welfare is our top priority. We’re in discussions with our Chennai plant workers to swiftly resolve all issues.”

“Snacks kits” were sent to the houses of protesting workers by the management of Samsung. | Photo Credit: By Special Arrangement

On September 18, police denied permission for a planned protest by 10 national and State trade unions at Valluvar Kottam, Chennai, arresting assembled workers. CITU State secretary A. Soundararajan, among other union leaders, was detained. Soundararajan later told the press, “Despite prior discussions among 12 unions, the government denied permission. We’ll continue our struggle through various means across the State.”

Muthukumar predicted intensifying protests as management and government delay resolutions. This forecast seemed accurate when workers from JK Tyres, Apollo Tyres, Hyundai, Yamaha, BMW, and others held gate meetings on September 16, condemning the mass arrests and expressing solidarity with Samsung protesters.

Rising labour movements in Sriperumbudur

In February 2023, hundreds of workers at Flex, an Apple supplier’s manufacturing plant, protested for better wages and union recognition. Muthukumar played a key role in organising workers under the CITU. Many view the current Samsung workers’ protest as a potential catalyst for labour unions, traditionally strong in the automobile sector, to gain ground in the electronics industry.

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Similarly, in June, when Foxconn faced allegations of gender bias in recruitment, the workers’ union began investigating the hiring process.

These recent developments, including the SIWU’s formation in July and the ongoing protest, indicate that labour movements in Sriperumbudur’s industrial region are gaining momentum and likely to expand across manufacturing units.

Muthukumar observed that while this trend has existed for over a decade, it has intensified recently. He explained, “Pre-liberalisation, the consumer market had limits. Now, with increased buying through loans and market expansion, companies seek ways to boost production, sometimes illegally by violating labour laws. Alternatively, they hire numerous casual workers at low wages, denying them the benefits given to permanent employees.”

As the sun sets on another day of protest, Suresh and his co-workers pack up their signs and fold their red union caps. They’ll return tomorrow to the familiar tent in Echoor, their temporary home in the fight for better working conditions, very well aware of the fact that their struggle reflects a broader, intensifying movement for labour rights in India’s rapidly expanding electronics industry.

Update

On September 30, the Madras High Court directed the State Labour Department to take a decision on the application submitted by the SIWU. Ellan, general secretary of the union, said that the company objected to the usage of its name. He added that it was named Samsung India Workers Union only for the sake of trade union activities. Even the trade union in Samsung’s South Korea plant, with over 28,000 members, is called the National Samsung Electronics Union.

The Left parties—the CPI(M), CPI, and CPI(ML)—organised a protest outside the Rajarathinam Stadium in Chennai on October 5, seeking the intervention of Tamil Nadu Chief Minister M.K. Stalin in the workers’ protest which was continuing for more than 25 days.

CPI(M) State secretary K. Balakrishnan, in his speech, acknowledged that the police had not granted permission to organise the protest but also questioned whether they were working with the fear of upsetting the Samsung management. He stressed on the constitutionally guaranteed right of the workers to form a union and highlighted the delay made in giving it a registration certificate.

Speaking to Frontline, Kannan said: “The company has cut the salary for eight days of the protesting workers. We are planning to approach the court.” The police personnel, who were more in number than the protestors, were quick to arrest the party leaders after their speeches.

On October 6, Tamil Nadu Industries Minister T.R.B. Rajaa had a meeting with people from Samsung’s management, which was followed by a meeting on the next day. Reports pointed out that the Chief Minister had designated three Ministers to hold talks with the stakeholders concerned and end the issue.

*Names of workers have been changed to protect their identities.

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