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Published 17:12 IST, September 25th 2024

Centre urges Tamil Nadu Govt to resolve Samsung workers' strike as it enters third week

The strike, which began on September 9, centers around workers’ demands for wage increases and union recognition at Samsung's home appliances plant.

Reported by: Business Desk
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Samsung workers strike for higher wages
Samsung workers strike for higher wages | Image: Reuters

Union Minister of Labour and Employment, Mansukh Mandaviya, has urged Tamil Nadu’s Chief Minister MK Stalin to take action and find a resolution to the ongoing strike by over 1,000 Samsung Electronics workers. The strike, now in its third week, has disrupted operations at Samsung’s plant near Chennai, with workers demanding higher wages and union recognition.

The minister has asked for an "early and amicable" resolution to the matter, news agency Reuters reported, quoting a government source. The Tamil Nadu state government is actively involved in mediating talks, but as of now, neither Samsung nor the Tamil Nadu government has responded to requests for comment from media.

The strike, which began on September 9, centers around workers’ demands for wage increases and union recognition at Samsung's home appliances plant. The factory is crucial for Samsung, contributing roughly a third of its $12 billion annual revenue in India. The plant is located in a prime industrial area near Chennai, alongside global manufacturing giants like Foxconn and Dell.

Samsung has defended its wage structure, stressing that its full-time workers earn nearly double what employees at other companies in the region receive. In a statement, the company said, “The average monthly salary of our full-time manufacturing workers at the Chennai plant is 1.8 times the average salary of similar workers in nearby companies.” Samsung also highlighted the availability of overtime pay, additional allowances, and a safe working environment.

Despite this, the striking workers, led by the labor group CITU, are calling for a further salary increase. They are currently earning around Rs 25,000 per month and are demanding a raise to Rs 36,000 over the next three years.

The Tamil Nadu Labour Secretary, Veera Raghava Rao, confirmed that efforts are underway to resolve the issue. However, tensions escalated last week when Samsung warned its striking employees that continued protests would result in withheld wages.

This strike comes at a critical time for India’s “Make in India” campaign, which aims to attract foreign investment and boost electronics production to $500 billion within the next six years.

(With Reuters inputs.)

Updated 17:12 IST, September 25th 2024