Workers' strike still on at Samsung Chennai unit despite pay hike offer

CITU sticking to its demand regarding Union recognition and talks with its leaders

Workers' strike at Samsung Electronics plant at Sriperumbudur entered 30th day on Tuesday with no end in sight as Centre of Indian Trade Unions (CITU), the union leading the charge, claimed that its major demands are yet to be fulfilled.

This is despite the company agreeing to pay a special incentive to the employees.

On Monday, the company signed an MoU with representatives of its workmen, in which it agreed to pay a special incentive of Rs 5,000 to its employees. CITU, which was leading the strike in which around 1,300 participated, was not part of the talks with the company.

 

“We held talks with the government. Our major demand of a CITU registered Union is not met. Until that is heard, we will go ahead with the strike. Those who signed the memorandum of understanding with the company are part of a committee set up by the company itself,” A Jenitan, a senior CITU leader, told Business Standard. 

According to the MoU, the company will provide a Productivity Stabilisation Incentive of Rs 5,000 per month, starting from October 2024 through March 2025. During wage negotiations with employees, this special incentive will be considered for the annual wage increment for 2025-26.

“CITU is stuck to its demand regarding Union recognition and talks with its leaders,” said a source aware about the development.

The Union is stuck to the demand that Samsung India Workers’ Union (SIWU) president E Muthukumar, a veteran CITU leader who is not an employee of the company, should be included in the discussions.

The company, on its part, had made it clear that it will talk to only its employees and not any third party. 

The Union reportedly claims that there was significant impact on production with compressor production dipping from 13,800 to 8,000 units per day, refrigerator production from 10,000 to 700 units per day, and washing machine production from 3,000 to 1,400 units per day. This dip is happening ahead of the festival season too. 

According to CITU, Samsung workers in Seoul receive Rs 4.5-6.0 lakh on average as wages and salaries, their Indian counterparts are drawing working in meagre Rs 20,000-25,000 per month, and hence the workers here should be paid Rs 36,000, extended over a period of three years.

The company said this claim is misleading and the average monthly salary of its permanent manufacturing workers at the Chennai plant is 1.8 times that of similar workers employed in the electronics sector.

The MoU was signed after marathon talks between the company and its employees in government intervention on Tuesday. State Industries Minister TRB Rajaa, Micro, Small, and Medium Enterprises (MSME) Minister TM Anbarasan, and Labour Minister CV Ganesan were spearheading the talks. 

As part of the MoU, the company also agreed to expand air-conditioned bus services from the current five routes to all 108 routes by next year.

In the unfortunate event of an employee’s death, Samsung will provide immediate relief of Rs 100,000 to the family. The company also agreed to launch the MD’s People First Promise program and introduce a channel to collect feedback from workmen to further improve working conditions.