Workers at Samsung Electronics' southern India plant have vowed to continue their strike until their demands for improved wages and working conditions are met, according to union leaders. This industrial action has disrupted the consumer appliances unit's output for the third consecutive day. The strike at the Sriperumbudur plant, located near Chennai, is one of the largest industrial disputes in India in recent years. The facility, which produces televisions, refrigerators, and washing machines, accounts for 20% to 30% of Samsung's annual $12 billion revenue in India, a crucial growth market for the company.
Union leader E. Muthukumar informed Reuters, "The strike will persist until a settlement is reached, with the next round of talks scheduled for Friday evening. As of now, the strike will continue until Friday." The Samsung factory is situated near units of other global giants like Foxconn and Dell in an area renowned for automobile and electronics manufacturing. On the first day of the strike on Monday, 50% of daily production was disrupted, while 30% was affected on Tuesday as some temporary workers were brought in to maintain production, according to a source with direct knowledge of the situation.
The workers are demanding that Samsung recognize their union, increase their wages, and improve their working hours. Samsung Southwest Asia CEO JB Park and other senior executives have visited the factory in an attempt to resolve the protests. Muthukumar stated, "They (Samsung) will soon have to talk to us, just like they had to engage with the Korean union there." In July and August, the 36,500 members of Samsung Electronics' largest worker union in South Korea demanded higher wages and benefits, striking for several days without impacting production.
Samsung, headquartered in South Korea and India's leading consumer electronics company, did not respond to a request for comment. A Samsung India spokesperson stated on Monday that the company actively engages with workers "to address any grievances they may have and comply with all laws and regulations." The strike in India occurs ahead of a critical festive season when consumer purchases increase and companies offer discounts. According to Samsung employees outside the factory, the company has not yet agreed to recognize the union supported by the local labor group, the Centre of Indian Trade Unions (CITU).
Many workers, wearing Samsung's blue uniform shirts and red CITU caps, were seen sitting inside a makeshift tent near the factory, which employs approximately 1,800 people. Meals were organized by the workers and distributed on Wednesday afternoon. Earlier in the morning, employees chanted together outside the factory: "We will stand together and secure a win." There has been no labor unrest reported at Samsung's other Indian plant in the northern state of Uttar Pradesh, which manufactures smartphones.