Samsung Electronics faces legal battle amid strike at Indian plant

Samsung Electronics’ Indian subsidiary has filed a lawsuit against members of a labor union leading an 11-day strike at its home appliances plant in Tamil Nadu, escalating tensions with its workers. The strike has disrupted operations at the facility, which is located near Chennai and contributes approximately a third of Samsung’s $12 billion annual revenue in India.

Samsung retail store India
Samsung retail store India

The lawsuit, filed on September 12, seeks a temporary injunction to prevent union members from protesting, sloganeering, and delivering speeches in and around the factory. The legal case is expected to be heard in a district court near Chennai in the coming days, Reuters news report said.

Since September 9, hundreds of Samsung workers have staged protests in a nearby tent, demanding higher wages and official recognition of their union. The strike has spotlighted issues with labor relations in India and cast a shadow over Prime Minister Narendra Modi’s “Make in India” initiative, which aims to attract foreign investment and significantly boost electronics production in the country.

In its 14-page court filing, Samsung warned that the union’s activities could disrupt operations and pose risks to factory safety. The company has not yet publicly commented on the case but previously indicated that it is engaged in talks to resolve the dispute.

The labor unrest is one of the most significant strikes in recent years in India. Samsung has also sued leaders of the Centre of Indian Trade Unions (CITU), a powerful national labor group backing the strike. CITU leader E. Muthukumar maintains that the workers are striking lawfully and intends to challenge Samsung’s claims in court.

The strike at Samsung’s Tamil Nadu plant, which employs around 1,800 workers, adds to the company’s challenges in India, where it faces antitrust issues and is reportedly planning job cuts of up to 30 percent in some divisions. While more than 1,000 workers from the plant are on strike, no unrest has been reported at Samsung’s smartphone manufacturing facility in Uttar Pradesh.

Latest

More like this
Related

Foxconn posts record Q3 revenue amid strong AI server demand

Foxconn, the world’s largest contract electronics maker, reported a...

TCL bolsters LCD business with $1.5 bn deal for LG Display’s plant

TCL Group has made a significant move to dominate...

Samsung Display to invest $1.8 bn in new OLED factory in Vietnam

Samsung Display, a unit of South Korea’s Samsung Electronics,...

Display panel makers to slash utilization amid falling prices

Global display panel manufacturers are set to significantly reduce...