Hundreds of employees at Samsung India plant in Sriperumbudur, near Chennai, have started an indefinite strike demanding equal pay and better working hours. The strike has reportedly affected the production of the plant, which manufactures consumer electronics like refrigerators and washing machines, partially.
According to reports, the management of the plant had urged the employees to disband the union, which is affiliated to the Centre of Indian Trade Unions (CITU). The union was formed recently and is yet to be registered under the registrar of unions. E Muthukumar, president of the Union, told the media that the management was raising false complaints to hamper the recognition of the union. He also said employees have been forced to work overtime up to 11 hours. A Samsung India spokesperson told Reuters that the company has been engaging with workers to resolve their grievances, adding that the tech giant will "ensure that there is no disruption to our consumers". A state government official said a conciliation process is underway between the management and workers, who have set up tents outside the factory.
The Sriperumbudur plant, which employs around 1,800 to 2,000 workers, is one of two key factories for Samsung in India, contributing significantly to its $12 billion annual revenue in the country. The Sriperumbudur factory was set up in 2007 and, along with the larger Noida plant in Uttar Pradesh, plays a key role in Samsung's operations in India, a critical growth market for the company. The strike in India comes in the wake of a similar strike by Samsung's largest union in South Korea over wage and bonus negotiations. Despite the disruptions, Samsung has employed contract staff to mitigate production delays.