Tech & Startup

Samsung India employee strike continues into second month

Workers rejected recent settlement offer from Samsung
Samsung logo
The strike, which began on September 9, 2023, has disrupted production at the factory, which manufactures home appliances like refrigerators, televisions, and washing machines. Image (for representational purpose): Reuters

More than 1,000 workers at the Samsung Electronics factory in southern India have continued their strike into its second month, rejecting a recent settlement offer from the company. The workers, stationed at a facility near Chennai in Tamil Nadu, are demanding higher wages and official recognition of their union, as per a recent report by Reuters.

The strike, which began on September 9, 2023, has disrupted production at the factory, which manufactures home appliances like refrigerators, televisions, and washing machines. The plant plays a crucial role in Samsung's operations, accounting for about one-fifth of the company's $12 billion sales in India during the 2022-23 fiscal year, highlights the Reuters report.

Samsung's recent settlement proposal offered workers a monthly incentive of 5,000 rupees ($60) until March, along with other benefits such as improved cafeteria options, air-conditioned buses, and a $24 gift card for employees in case of childbirth. However, the Centre of Indian Trade Unions (CITU), which supports the workers, rejected the offer, citing the lack of union recognition. A. Soundararajan, CITU's state president, emphasized that the strike would intensify until their demands are met.

The workers are asking for a wage increase to 36,000 rupees ($430) per month, spread over three years. Currently, the average salary at the factory is 25,000 rupees ($300) per month. Samsung has countered that the wages they pay are almost double the average for similar positions in the region, claims the Reuters report.

While Samsung has expressed a willingness to engage with the workers and has agreed to fulfill 14 of their demands, Tamil Nadu's industries minister, T.R.B. Rajaa, has urged the workers to return to their jobs before further negotiations can take place.

As of now, the other Samsung factory in India, located in Uttar Pradesh and primarily focused on smartphone production, has not experienced any labour unrest, according to Reuters.

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Samsung India employee strike continues into second month

Workers rejected recent settlement offer from Samsung
Samsung logo
The strike, which began on September 9, 2023, has disrupted production at the factory, which manufactures home appliances like refrigerators, televisions, and washing machines. Image (for representational purpose): Reuters

More than 1,000 workers at the Samsung Electronics factory in southern India have continued their strike into its second month, rejecting a recent settlement offer from the company. The workers, stationed at a facility near Chennai in Tamil Nadu, are demanding higher wages and official recognition of their union, as per a recent report by Reuters.

The strike, which began on September 9, 2023, has disrupted production at the factory, which manufactures home appliances like refrigerators, televisions, and washing machines. The plant plays a crucial role in Samsung's operations, accounting for about one-fifth of the company's $12 billion sales in India during the 2022-23 fiscal year, highlights the Reuters report.

Samsung's recent settlement proposal offered workers a monthly incentive of 5,000 rupees ($60) until March, along with other benefits such as improved cafeteria options, air-conditioned buses, and a $24 gift card for employees in case of childbirth. However, the Centre of Indian Trade Unions (CITU), which supports the workers, rejected the offer, citing the lack of union recognition. A. Soundararajan, CITU's state president, emphasized that the strike would intensify until their demands are met.

The workers are asking for a wage increase to 36,000 rupees ($430) per month, spread over three years. Currently, the average salary at the factory is 25,000 rupees ($300) per month. Samsung has countered that the wages they pay are almost double the average for similar positions in the region, claims the Reuters report.

While Samsung has expressed a willingness to engage with the workers and has agreed to fulfill 14 of their demands, Tamil Nadu's industries minister, T.R.B. Rajaa, has urged the workers to return to their jobs before further negotiations can take place.

As of now, the other Samsung factory in India, located in Uttar Pradesh and primarily focused on smartphone production, has not experienced any labour unrest, according to Reuters.

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