Workers' strike hit production at Samsung's Chennai unit, output disrupted

The unit manufactures televisions, colour monitors, refrigerators, and washing machines

Operations at the Samsung Electronics manufacturing unit at Sriperumbudur, around 40 kilometres from Chennai, were hit for the second consecutive day on Tuesday, following a strike by hundreds of workers demanding a hike in wages among other issues.

Around 85 per cent of the 1,700 workers at the plant are part of the strike, according to E Muthukumar, leader of the Centre of Indian Trade Unions (CITU) from Kancheepuram district and president of the Samsung India Workers’ Union (SIWU).

“We want an increase in average wages from Rs 25,000 to Rs 36,000. In addition to this, the working time of employees should be eight hours as per the Factory Act and they should not be forced to work for 11 hours, unless some worker is doing extra time, with consent,” Muthukumar told Business Standard.

“We also want the company to allow (workers’) unions to function at the unit. Moreover, employees should be given jobs based on their expertise," Muthukumar added.

Interestingly, it was only in July that SIWU was formed with CITU backing at the South Korean electronic giant's factory in Sunguvarchatram near Sriperumbudur. The Union also extended solidarity with 30,000 striking Samsung workers at Seoul, South Korea, at that time. The biggest workers’ union has been demanding higher wages and benefits.

Meanwhile, a Samsung India spokesperson said in a statement that the welfare of its employees is among its top priorities.

“At Samsung India, the welfare of our employees is our top priority. We actively engage with our workers to address any grievances they may have and comply with all laws and regulations. We will also ensure that there is no disruption to our consumers," said a Samsung India spokesperson.

At present, the company has two manufacturing units in India­ -- in Noida and Sriperumbudur. According to media reports, the Sriperumbudur plant contributes to around 20-30 per cent of Samsung's $12 billion annual revenue in the country.

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 its key products. Some of these innovative digital appliances are exported to other countries.

After its entry into India in 1995, the company has consolidated its market leadership in the country with two factories, five R&D centres and one design centre. These are supported by a strong network of over 200,000 retail outlets and over 3,000 customer service points.