After 37-day strike, bonhomie in sight at Tamil Nadu Samsung plant

After two days of relentless rainfall and navigating through knee-deep water, the residents of Chennai finally saw clear skies on Thursday, as floodwaters began to recede from the streets.

About 50 kilometers away from the city, the Samsung Electronics unit in Sriperumbudur, where the future of production was clouded by a 37-day employee strike, finally brightened as workers returned to work under clear skies.

For an outsider, the plant spread over around 80 acres of land appeared calm after its production was affected by the strike that began on September 9. The importance of the unit is such that it contributes around 20-30 per cent to Samsung's $12 billion annual revenue in India by manufacturing televisions, colour monitors, refrigerators, and washing machines. According to an industry estimate, one refrigerator is made in every nine seconds at the unit. 

Going by that standard, on a day when the strike ended, the plant looked deserted from the outside with a few policemen and security guards around. "The employees came and after some time they left together," said a security guard, denying permission to take photographs.

Vijay Krishnan (name changed), an employee who was part of the strike, was in a happy mood outside the plant.

"We had a good meeting in the canteen. Management welcomed us and everyone was happy. We were given confidence that no action will be taken against striking workers and we will start getting our salaries from today," he told Business Standard.

Employees were told to return to work from Monday onwards for a fresh start for improved production. Around 85 per cent of the total 1,700 employees were part of the strike led by the Centre of Indian Trade Unions (CITU).

The management agreed on Monday to fulfill almost all the employees’ demands. The demands included a wage increase, recognition of the CITU-backed Samsung India Workers' Union (SIWU), addressing workers’ grievances over excessive workloads paired with low wages, and strenuous overtime targets. 

"Today, senior officials addressed the gathering and gave them confidence that they belong to the company. They were also informed that special training will be given to them (to improve skills)," said A Jenitan, a senior CITU leader.

The strike was not only putting the future of the company and its 1,700 employees in jeopardy but also those dependent on the ecosystem. According to a source, more than 90 per cent of the company’s sub-contractors and 60 per cent of vendors are from Tamil Nadu, employing thousands.

"The company has around 50-60 raw material suppliers, 50 logistics vendors, 25-30 trade subcontractors, and  300 non-trade vendors in Tamil Nadu itself," he added, indicating that the strike was affecting this entire ecosystem.

As a settlement, the company agreed to provide a Productivity Stabilisation Incentive of Rs 5,000 per month, starting from October 2024 to March 2025. During wage negotiations with employees, this special incentive will be considered for the annual wage increment for 2025-26. This is in addition to addressing all other demands of the employees. The settlement was reached after the government played the role of the mediator between the two parties. 

Set up in 2007, the manufacturing facility in Sriperumbudur produces luxury redefining QLED TVs, lifestyle TV The Frame, innovative Curd Maestro Refrigerators, AI Ecobubble Washing Machines with bi-lingual user interface, and WindFree ACs among other key products. Some of these innovative digital appliances are exported to other countries.

As production is set to resume in full swing, Krishnan said: "All is well that ends well." 

Samsung Timeline

2007: Samsung India Electronics unit starts functioning at Sriperumbudur and operated without a union for 16 years.

June 16, 2024: Samsung India Workers Union (SIWU) was formed with CITU’s backing

June 27: Employees submit a letter to the management, informing that the union is formed with 1,455 worker members 

July 11: SIWU submits charter of demand to the company 

August 19: Employees give a strike notice, after waiting for more than 45 days time limit for trade union registration under the Trade Unions Act, 1926. 

September 9: Employees start a strike at Echoor, near the unit

October 15: Employees and management sign a memorandum of understanding to end the strike

October 17: Employees return to work