For over a month now, a small town on the outskirts of Tamil Nadu’s capital Chennai has turned into a symbol of labour empowerment. More than 1,200 employees at the Sriperumbudur unit of Samsung Electronics have been on strike since September 9, demanding better wages and working conditions, and recognition of their newly formed labour union – the Samsung India Workers Union (SIWU).
Almost 70% of the total workforce at the Sriperumbudur unit, which produces televisions, refrigerators, and washing machines, have been off work, disrupting operations ever since the strike began last month. Despite repeated threats of pay cuts and termination from the management, SIWU’s protest, which is backed by the Centre of Indian Trade Unions (CITU), entered its second month on Wednesday.
The workers have been sitting in protest at Echoor, almost a kilometre from the Samsung facility. This particular unit reportedly contributes nearly a third of Samsung’s annual revenue of $12 billion in India.
Workers’ woes
The protesting workers say that despite the growth that the company has been experiencing over the past many years, their salaries have remained stagnant. The employees, many of who have been working with Samsung for more than 10 years, continue to earn an average of less than Rs 25,000 per month, making it difficult for them to meet expenses. One of SIWU’s demands is a staggered increase in wages by 50% over the next three years.
The other issue workers have raised is with regard to their working conditions which includes extensively long working hours. They say that most of the time they are made to work beyond their 9-hour shifts and the nature of their work requires them to stand for most part of the shift. They allege that they hardly get 5 to 10 minutes of break during the day, leading to physical ailments.
SIWU’s charter of demands includes a 7-hour working day and a 5-day work week, and increased paternity leave from 3 to 7 days. The demands also include Rs 1 crore to be given to the family of any worker who passes away at work and Rs 25 lakh if they pass away outside of the workplace.
But their most important demand is recognition of their union – SIWU.
‘Ready to call off strike if union is recognised’
The South Korean giant has historically maintained a ‘no union’ policy since its inception, but recent developments globally have shown a shift in this stance.
In July 2021, Samsung Display workers in South Korea went on strike, after which they successfully achieved a 4.5% wage hike revision. In August the same year, Samsung Electronics workers won a collective bargaining agreement, which included recognition for full-time union members, guarantee for union activities, establishment of rules on managing industrial accidents, and improvements in human resources policies.
Emboldened by these victories, SIWU, with the support of CITU, in 2023 sought registration under the Trade Unions Act, 1926. However, the Tamil Nadu government has stopped the registration process, citing trademark violation concerns, as the name of the union had the name ‘Samsung’ in it. The case is currently pending in the Madras High Court.
Speaking to TNM, Soundararajan, CITU state president and honorary president of SIWU, said that if the company was willing to recognise the union and agree to discussions, then the workers would call off the strike immediately. “They have to discuss wages and other working conditions with the union. For that they have to accept the union, because it is a majority union. If they say that we accept the union and are ready to discuss with them, we will immediately withdraw the strike. Our demand is the right to form associations. Right to collective bargaining. Right to get the union registered. These are the main demands. We are not in a hurry to increase the wages. They are making it sound as if it’s a strike for wages. Workers are not babies. You cannot cheat them,” he said.
TN government’s response
The ruling Dravida Munnetra Kazhagam (DMK) government in Tamil Nadu finds itself in a spot as its alliance partners – CPI(M), VCK, and others – visited the protest site and offered their support to the workers in the ongoing strike.
The CITU-SIWU has even accused the state government of supporting the Samsung management and discouraging unionisation.
On October 8, Tamil Nadu Industries Minister TRB Rajaa urged the striking workers to return to work, emphasising the need to protect jobs and employment opportunities for the state’s youth. The Minister said that Samsung and a ‘workmen’s committee’ had reached an agreement to offer a Rs 5,000 monthly ‘Productivity stabilisation incentive’ from October 2024 to March 2025. However, the protesters rejected this agreement, alleging that the committee doesn’t represent the interests of the workers who are part of the majority union, i.e., SIWU.
“Around 200 of the 1,800 workers at the facility who did not attend the strike were selected and taken to the secretariat and asked to sit in front of three ministers. The management dictated the terms and they are calling this the MoU. The MoU has nothing to do with the striking workers. The strike will continue,” Soundararajan told TNM.
Samsung’s stance
The management of Samsung Electronics have maintained that they are not willing to talk to the union as long as it is backed by CITU. They have said that they will only engage directly with the workers.
Samsung India has said that it will ‘prioritise’ implementation of certain steps to improve the working environment for the welfare of its employees. One of the main measures is the ‘Productivity stabilisation incentive’ mentioned by Minister Rajaa. The company said it would provide this interim special incentive of Rs 5,000 per month from October 2024 up to March 2025, which will be considered with the annual increment in wages for the financial year 2025-26.
The company has agreed that in the event of the death of an employee while in service, they will provide an immediate assistance of Rs 1 lakh to the family.