Hundreds of Samsung workers in India are protesting, demanding a 50% salary increase over three years and improved working conditions. The strike has led to major disruptions in production at the company’s Chennai plant, with Labour Welfare Minister CV Ganesan assuring union officials that talks are underway to resolve their issues.
Union Arrangements for Protesters
The union arranges lunch and water for protesters, while a makeshift cloth tent protects them from the elements. However, there are no washroom facilities available, so workers use the outdoors.
Impact of the Strike on Production
The strike by over 1,500 workers has led to major disruptions in production at Samsung’s Chennai plant, one of its two factories in India. The plant employs nearly 2,000 workers and produces home appliances, contributing about a third to the company’s annual $12bn revenue in India.
Official Statements from Authorities
Labour Welfare Minister CV Ganesan has assured union officials that talks are underway to resolve their issues, stating that the government will fulfill the demands of the workers. Samsung India has released a statement saying that it is ready to communicate with the work council comprised of a majority of employees on matters including wages, benefits, and working conditions.
Use of Human Resource Strategies by Multinational Corporations
Labour economist Shyam Sundar has stated that multinational corporations use various strategies to prevent workers from forming unions in developing countries like India. These include opposing workers joining external, politically-backed unions and encouraging them to form “worker-led” internal ones.
Protest in India
Background
Statistics
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In 2022, about 40% of the workforce in industrial establishments in India were contractual laborers.
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The Chennai plant contributes about $4 billion to Samsung’s annual $12 billion revenue in India.
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Workers are demanding a 50% increase in salary over three years.
Demands
The workers have three key demands:
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Recognition of the new union, SILWU.
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Allowance for collective bargaining.
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Rejection of competing unions.
Allegations
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Workers are being pressurized to finish each product within 10-15 seconds.
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They are made to work non-stop for four to five hours at a stretch.
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The management is threatening their families if they do not leave the new union.
Response from Samsung India
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The company denies all allegations, stating that it maintains absolute compliance with labor laws.
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It also claims that workers get suitable breaks and that employees work on their given task without being required to finish a product in a short time frame.
Government Involvement
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Tamil Nadu’s Labour Welfare Minister CV Ganesan has assured union officials that talks are under way to resolve the issues.
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He has stated that the government will fulfill the demands of the workers.
Background on the Unionization Effort
The Samsung India Labour Welfare Union (SILWU) has been formed to represent the interests of workers at the Chennai plant. The union is backed by the Centre of Indian Trade Unions (CITU), which is supported by the Communist Party of India (Marxist).
Demands of the Workers
The protesting workers are seeking a 50% increase in wages over three years, staggered raises, and improved working conditions. They also demand recognition of their union, collective bargaining rights, and rejection of competing unions.
Allegations Against Samsung
Labour rights activists have alleged that multinational companies like Apple and Amazon underpay and overwork Indian employees and collude with state governments to suppress workers’ rights. The protesters claim they are being pressurized by management to finish products within 10-15 seconds, work non-stop for four to five hours at a stretch, and do their jobs in unsafe conditions.
Response from Samsung
Samsung India has denied the allegations, stating that all workers get suitable breaks between tasks and that employees work on specific manufacturing processes as products pass through the conveyor line. The company maintains absolute compliance with all existing labour laws.
