Samsung: Samsung signs MoA with some workers at Chennai facility; agrees to a slew of demands

Samsung India on Monday signed a Memorandum of Agreement (MoA) with a section of workers agreeing to a slew of demands stating that both parties will collaborate to “mitigate the difficulties faced by workmen” by resolving the ongoing strike which commenced on September 9, 2024.

The company said it will prioritise the implementation of several measures to improve the working environment for the welfare of its workmen, and continuously consult with a workmen committee to implement measures to enhance the competitiveness of wages as well as provide an interim special incentive called the Productivity Stabilisation Incentive equivalent to Rs 5,000 per month, effective from October 2024 upto March 2025. Samsung said the modalities of the payment will be finalised in consultation with the workmen committee.

“This special incentive shall be considered with the annual increment in wages for the year 2025-26, that will be finalised in consultation with workmen committee during the wage negotiations,” the company said in the MoA, signed by Samsung India Electronics Managing Director Yoon Sung-hyun, which has been reviewed by ET.

The company has also agreed to expanding the operation of air conditioned buses by next year from only five routes currently to all 108 routes. It has also said it will increase the number of workmen family invitation events in a year for four to six times a year and will also present a gift worth Rs 2,000 to each family that participates at an event.

“In the unfortunate event of the death of an employee while in service, the Company shall provide an additional immediate assistance of Rs 1 lakh to the family to take care of their immediate needs,” Samsung added.

Further the company has said it will open a new medical room in the compressor building, will diversify the cafeteria menu, increase meal allowances, upgrade break rooms and restrooms, replace old lockers, install canopies between buildings and even enhance the number of vacations that can be availed by the workmen. Samsung has also said it will give employees a gift card of Rs 2,000 to the workers on the birth of a child

“Three days marriage leave will be introduced for employees,” the company stated. “Paternity leave for the birth of the first and second child will be increased from three to five days. Further changes in the number of vacations will be done in consultation with the workmen committee.”