Samsung workers in India begin strike, disrupting production

Hundreds of workers at a Samsung Electronics plant in southern India have launched an indefinite strike to demand higher wages, partially impacting production on Monday, according to union sources. The plant, located in Sriperumbudur near Chennai, produces refrigerators and washing machines and employs under 2,000 workers, Reuters news report said.

Samsung Electronics job in Korea
Samsung Electronics job in Korea
@ SamFW

Samsung has 124,607 employees globally at the end of 2023. The consumer electronics giant does not reveal the number of employees in India. Samsung has paid total annual salary of KRW 14,478,272 million in 2023 to its employees. Average compensation to Samsung’s employees  was KRW 120 million in 2023.

Samsung India Electronics has generated a profit of KRW 1,153,256 million on sales revenue of KRW 15,216,331 million in 2023.

Samsung Electronics’ global revenue in 2023 fell 14.32 percent to around 259 trillion South Korean won or approximately US$194 billion.

Approximately half of the factory’s daily output was disrupted as a significant portion of employees joined the strike. The workers, led by union head E. Muthukumar, are demanding better wages and improved working conditions. Many strikers were seen sitting outside the plant in their company uniforms.

The protest follows a similar labor action at Samsung’s South Korean facilities in August, where workers went on a four-day strike over wage and bonus negotiations. This growing labor unrest comes at a time when Samsung views India as a key market.

A Samsung India spokesperson stated that the company is actively engaging with workers to resolve the issue and ensure compliance with all local laws. Samsung also emphasized its commitment to minimizing disruptions, especially ahead of India’s festive season, which typically sees an increase in consumer demand for electronics.

To counter potential production losses, Samsung has employed contract workers to maintain operations at the plant. However, the ongoing strike presents a challenge for the electronics giant, which operates two major factories in India, the second located in Noida.

In South Korea, members of the National Samsung Electronics Union (NSEU), the largest labor union representing 31,000 workers, has demanded a 5.6 percent basic pay raise for all members, a guaranteed day off on the union’s founding day and compensation for economic losses due to the strike.

Baburajan Kizhakedath

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