Samsung Electronics' Indian subsidiary has filed a lawsuit against members of a labor union that has spearheaded a strike lasting 11 days at its sole Indian home appliances plant in the southern state of Tamil Nadu, intensifying tensions with its workforce, according to legal documents.
Samsung's legal action, dated September 12 and reported first by Reuters, seeks a temporary injunction from a district court in Tamil Nadu to prevent the union and its members from engaging in agitation, sloganeering, and making speeches within and around the factory situated near Chennai. Legal representatives convened in a court in Kancheepuram district, near Chennai, where the case was scheduled to be heard on Thursday.
Since September 9, hundreds of Samsung workers have disrupted operations and protested in a makeshift tent nearby, demanding higher wages and recognition of a union at the plant, which accounts for approximately a third of Samsung's annual India revenue of $12 billion. These protests have cast a shadow over Indian Prime Minister Narendra Modi's initiative to attract foreign investors under the 'Make in India' campaign and to triple electronics production to $500 billion within six years.
Samsung's 14-page court filing, which is not publicly accessible, asserts that the union's actions 'could disrupt the factory's operations and prevent willing employees from fulfilling their duties.' Such activities 'are likely to escalate, endangering the smooth functioning of the factory and the safety of its employees,' Samsung stated. Samsung did not respond to a request for comment. Last week, it informed Reuters in a statement that it had initiated discussions with workers at the plant 'to resolve all issues at the earliest.'
The labor unrest marks one of the most significant strikes in recent years in India. In its lawsuit, Samsung has targeted top officials of the influential labor group, Centre of Indian Trade Unions (CITU), which has mobilized the company's workers. Samsung is reluctant to recognize any union backed by a national labor group, and negotiations with workers and state officials have not led to a resolution.
CITU leader E. Muthukumar told Reuters that the workers are 'lawfully striking' and will contest Samsung's claims in court. More than 100 workers were briefly detained by police on Monday as they planned a march without permission.
The strike compounds Samsung's challenges in India. The company is planning job cuts of up to 30% of its overseas staff in certain divisions, including in India. Additionally, India's antitrust body has found that Samsung and other smartphone companies colluded with e-commerce giants to exclusively launch devices, violating competition laws, as reported by Reuters.
The Samsung plant employs approximately 1,800 workers, with more than 1,000 participating in the strike. The factory produces appliances such as refrigerators, TVs, and washing machines. Another Samsung plant that manufactures smartphones in the northern state of Uttar Pradesh has experienced no unrest.
