Industrial dispute of Samsung workers in India escalates, as tech giant warns of no pay and potential terminations
The industrial action involving workers at a Samsung factory in southern India boycotting work continues, despite talks with high level company executives last week.
The strike action involving hundreds of workers at the Sriperumbudur facility in southern India plant has been ongoing since 9 September, and Samsung seems to have lost patience, and has warned strikers of ‘no work, no pay’, and possible terminations.
The plant reportedly makes a range of consumer goods including televisions, refrigerators and washing machines, and is said to contribute between 20 percent and 30 percent of Samsung’s annual $12 billion revenue in India.
Samsung warning
The dispute at the Samsung plant near the city of Chennai, is one of the biggest such strikes in recent years in India and centres over demands for better wages and recognition of a union at the plant.
Reuters, citing a company email, reported that Samsung Electronics has now warned its striking workers they will not receive wages if they continue protesting and also face the risk of termination.
The warning comes after Samsung last week sued the protesting union in a district court, seeking a temporary injunction to restrain sloganeering and making speeches in and around the factory.
However the judge on Thursday reportedly only called for a swift resolution.
Samsung India’s HR team wrote an email to some striking workers on Friday, saying they were engaging in an “illegal strike” and will not be entitled to wages for the period of protest.
“You shall not be entitled to wages from 09.09.2024 to the date you report back to work on ‘No work No Pay’ basis,” said the email, seen by Reuters.
The email also warned that if employees don’t return to work within four days, they will need to explain why they “should not be dismissed from service.”
Samsung statement
Samsung India in a statement told Reuters it has informed workers of its policy based on “relevant laws and regulations, and urged them to return to work immediately.”
“The safety and well being of our workers are a priority. We remain committed to resolving this issue,” the statement added.
At least three striking Samsung workers confirmed to Reuters they received Friday’s warning email from the HR team.
The email also said Samsung management had indicated all issues can be resolved by discussions.
Industrial action
The Samsung plant employs approximately 1,800 workers and more than 1,000 of them have been on strike, Reuters reported.
The other Samsung plant that makes smartphones in the northern state of Uttar Pradesh has apparently not experience any similar industrial action.
Reuters reported that Samsung workers are earning 25,000 rupees ($300) on average per month, according to labour group CITU that has helped mobilise the factory workers. They are demanding a raise of 36,000 rupees ($430) over three years.
However Samsung is not keen to recognise any union backed by a national labour group like CITU, and talks with workers and state officials have not yielded a resolution.
Reuters noted that the Samsung strike is one of the biggest in India in recent years and has cast a shadow over Indian Prime Minister Narendra Modi’s plan to attract foreign investors to “Make in India” and to triple electronics production to $500 billion in six years.
The Indian strike comes after thousands of members of Samsung Electronics’ biggest worker union in South Korea had demanded higher wages and benefits, striking for several days in June, July and August.
