The workers’ strike at Tamil Nadu’s Sriperumbudur unit of Samsung Electronics has entered its second month. More than 1,200 employees of this unit, located on the outskirts of Chennai, have been on strike since September 9, demanding better wages, working conditions, and the recognition of their newly formed labour union – the Samsung India Workers Union (SIWU).
However, these are just a few of the 20 demands the union, backed by the Centre of Indian Trade Unions (CITU), has put forward. The protest, which began a month ago on September 9, was only addressed by the Tamil Nadu state government and Samsung in October. Members of the union told TNM that workers who did not attend the protest were tactfully selected for the meeting and that settlement terms were dictated to them as part of a strategy to get the strike withdrawn. They also emphasised that this strike is about their right to collective bargaining, not just wages.
Workers demand recognition of union
“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,” said Soundararajan, CITU state president and honorary president of SIWU.
Soundararajan said that allocating Rs 5,000 was a “strategy”. “If anybody wants this amount, they can sign the MoU. This is illegal as per the Industrial Disputes Act. Wage hike is not the only demand we are making.”
He further added, “You have to discuss wages and other working conditions with the union. For that, you have to accept the union itself, because it is the majority union. If they say that we accept the union and are ready to discuss, immediately we will withdraw the strike. Our demand is the right to form associations, to collective bargaining and to get the union registered. These are the main demands. We are not in a hurry to increase the wage. They are projecting as if this is a strike for wages. Workers are not babies. You can't cheat them."
Here is the full list of demands put forward by the SIWU:
1. Rs 36,000 should be given as a total raise for 3 years. It should be split as 70% for 2024, 15% for 2025 and 15% for 2026.
2. Service weightage should be provided. Rs 500 per annum based on the year of joining the service.
3. Working hours should be changed. A workday should be 7 hours long. Workflow should be changed to 3 shifts. A-5 day work week is demanded.
4. Shift allowance should be increased by 100 rs. Currently, it is Rs 150. It should be increased to Rs 250 that
5. Pay disparity for two people in the same job description should be eliminated. The disparity is currently between those who joined before and those who joined recently but both of them hold the same responsibilities. So this should be regulated.
6. Workers should be taken for a 3-day trip sponsored by the company somewhere within 500 km of the plant's location, every year. For those 3 days, an allowance of Rs 1500 should be provided to each employee.
7. We want 7-day Casual Leaves. The number of Sick Leaves should be increased from 10 days. The leaves not taken should be combinable.
8. Paternity leave should be increased from 3 to 7 days.
9. For the death of parents, employees should be granted 11 days of paid leave to perform all last rites.
10. Presently, the company is paying Rs 5000 for performing last rites for employees' parents. It should be increased to 25K.
11. The company should pay Rs 50,000 for a child's education up to 2 kids per employee.
12. Employees' family medical insurance should be changed from Rs 2.5 lakh to Rs 5 lakh. Employee's medical expenses should alone be accepted fully by the company.
13. If an employee dies while on duty, Rs 1 crore should be offered to the family.
14. If an employee dies while on duty or dies a natural death while serving the company, the employee's eligible heir should be offered a permanent job.
15. If an employee dies due to any reason outside of work, their family should be offered Rs 25 lakh
16. Service allowance should be awarded- Rs 10,000 for 5 years of service, Rs 20,000 for 10 years, Rs 30,000 for 15 years and so on.
17. For Ayudha pooja, each employee should be paid Rs 12,000 as a gift amount.
18. On the annual day of the company, food and gifts worth Rs 5,000 should be given.
19. Family day should be held at the workplace where employees can once a year bring their families to their place of work. Food should be provided and gift vouchers worth Rs 2,000 should be given.
20. On off days like Sunday, when workers come to work, they should be paid Rs 1,000 as an encouragement fee
What the govt and Samsung did
Although the protests began on September 9, it was only on October 7, that the Dravida Munnetra Kazhagam (DMK)-led Tamil Nadu government decided to initiate talks with Samsung. This meeting saw the participation of three cabinet ministers – Labour, Micro, Small and Medium Enterprises (MSME), and Industries.
Following the meeting, the South Korean company’s Indian management agreed to give some concessions and came up with a settlement agreement (MoU), which was signed by some of the workers of the company, whom they referred to as the ‘Workmen’s Committee’.
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 monthly ‘Productivity Stabilisation Incentive’ of Rs 5,000 from October 2024 to March 2025, which will be considered with the annual increment in wages for the financial year 2025-26.
What were the other concessions made in the MoU?
In their MoU, Samsung further said that it will work with the “Representative of Workmen” to “mitigate the difficulties faced by workmen and enhance the Company's competitiveness by resolving the ongoing illegal strike which commenced on September 9th, 2024”.
The MoU stated that Samsung India will ‘prioritise’ the implementation of certain measures to improve the working environment for the welfare of its employees. The company also agreed that in the event of the death of an employee while in service, they will provide additional immediate assistance of Rs 1 lakh to the family.
The other concessions made in the MoU include:
The operation of air-conditioned buses will be expanded by next year from only 5 routes currently to all 108 routes.
The company will increase the number of workmen family invitation events in a year from 4 to 6 times a year. At each event, a gift worth around INR 2,000 will be given to each family that participates at an event.
The Company will open a new medical room in the compressor building.
The Company will diversify the cafeteria menu, as also increase meal allowances.
The Company shall upgrade break rooms and restrooms in the manufacturing building. Further, old lockers in the production line will be replaced.
Recognising the need to walk between buildings, the Company will install canopies between buildings.
The Company will enhance the number of vacations that can be availed by the workmen.
Read: Explainer: Why Samsung workers in Tamil Nadu are on strike