Hundreds of employees at a Samsung Electronics plant in southern India went on strike demanding higher wages, causing production disruption. Samsung, India’s biggest consumer electronics company, considers the country a key growth market, producing various electronic products in its Sriperumbudur factory, which makes up 20% to 30% of the company’s annual revenue in India. The strike, led by union leader E. Muthukumar, is in its third day, with workers seeking better wages, hours, and the recognition of a union backed by the Centre of Indian Trade Unions. Samsung executives, including Southwest Asia CEO JB Park, are working to resolve the situation, but no settlement has been reached yet.
The strike affects about half of the factory’s daily production, with posters declaring “Indefinite Strike” displayed outside the facility near Chennai. Despite negotiations between workers, management, and labor officials, there is no indication of a resolution timeline. Samsung has not provided any public comments on the issue, although a spokesperson stated the company actively engages with workers to address grievances and comply with laws. With India’s festive season approaching and consumers looking for discounts on electronics, the strike threatens Samsung’s production ramp-up ahead of the sales season.
In South Korea, Samsung Electronics’ largest worker union has also held strikes in demand of higher wages and benefits, although production was not significantly disrupted. In India, workers are seeking equal pay based on experience levels, citing the need for fair wages and respectful treatment. Political leaders have sided with the workers, advocating for discussions with union officials to resolve their demands. The strike at the Indian factory highlights a trend of labor unrest within Samsung, with employees across different countries seeking fair compensation and recognition of their rights through forming unions.
Despite the surrounding tensions, Samsung’s shares fell 1.9% in Seoul, while discussions between workers, management, and government officials in India continue. The strike poses a challenge for Samsung as it navigates the complexities of labor relations in key markets like India and South Korea, balancing the need for cost-effective production with fair wages and working conditions for its employees. The ongoing strike underscores the importance of addressing workers’ concerns and ensuring sustainable labor practices to maintain production efficiency and consumer trust in Samsung products.
