Samsung strike: ETtech Explainer: How did the strike at Samsung’s Chennai factory unfold?

About two-thirds of the 1,800 employees at Samsung’s flagship factory in Chennai have been on strike for over a month, demanding better wages, an eight-hour workday, better working conditions, and recognition of their newly-formed labour union, the Samsung India Workers Union (SIWU).

What was the state government’s role?

Initially, the state government did not step in to help resolve the dispute after workers at the Sriperumbudur plant struck work on September 9. It was only a few weeks later when chief minister M.K. Stalin returned from a trip to the US that the government decided to engage in talks with the workers. How did the Samsung management respond?

The Samsung India management outlined several measures aimed at enhancing worker welfare, according to a statement from the state labour department. These steps were intended to address employees’ concerns and foster a better working environment.

How was the matter resolved?

Following negotiations, the striking workers agreed to call off their agitation and resume work immediately on October 15. The labour department assured them that management would not victimise anyone for participating in the protest, allowing for a smoother transition back to normal operations.

“Both the parties have accepted this advice. The workers informed that they would call off the strike immediately and return to work. Thus the strike at the Samsung factory has come to an end and all the workers are resuming work,” a government statement said.

Why are these developments significant?

The Chennai plant plays a crucial role in Samsung’s overall strategy in India, contributing approximately one-fifth of the company’s $12-billion sales for the fiscal year 2023. The strike highlighted the challenges faced by workers in the electronics industry and underscores the importance of dialogue and collaboration between management and employees to achieve fair working conditions.