37-day strike by workers at Samsung's Sriperumbudur unit finally ends

Wage hike, assurance of no disciplinary action behind the breakthrough

A 37-day-long strike by workers at Samsung Electronics' unit in Sriperumbudur was called off on Tuesday following their extensive negotiations with the management and the Tamil Nadu government. The agreement encompasses an earlier wage hike decision, an assurance that no disciplinary action will be taken against those who participated in the strike, and a commitment by workers to refrain from any “pre-judicial” actions against the company.

At the heart of the strike were calls by the workers, led by the Centre of Indian Trade Unions, for a wage increase — a demand that Samsung management had already conceded to early on. However, the CITU extended the strike to press for official recognition of its union at the factory, a matter now pending in court. As part of the settlement, both parties agreed to await the court’s verdict on union recognition.

 

The state government has expressed support for the union’s registration, and with this, the CITU has consented to cease all strike activities.

In the final round of conciliation talks, both management and workers agreed on a quick return to normalcy, with assurances from Samsung that striking workers would face no punitive action. For their part, the workers promised full cooperation and pledged not to engage in any activity that could harm the company’s interests.

The management has also committed to providing a written response to the demands the workers had submitted to the conciliation officer.

The state government in a statement said: “Both parties have accepted the terms. The workers have informed that they will call off the strike immediately and return to work. Thus, the strike at the Samsung factory has come to an end.”

An announcement from the CITU in this regard is expected on Wednesday, pending a general body meeting of the Samsung India Workers' Union, but union leaders have indicated that the government and the company have met all their principal demands.

The strike began on September 9, fuelled by workers’ grievances over excessive workloads paired with low wages, strenuous overtime targets, and Samsung’s policy of not recognising their union.

In response, Samsung last week agreed to implement a “Productivity Stabilization Incentive” of Rs 5,000 per month, which will run from October 2024 to March 2025. This incentive will be considered in the annual wage increment discussions for 2025-26. State Industries Minister T R B Rajaa, MSME Minister T M Anbarasan, Public Works Minister E V Velu, and Labour Minister C V Ganesan played a key role in mediation.

Additional concessions from Samsung include expanded air-conditioned bus services, currently available on five routes, which will soon cover all 108 routes. The company will also provide a Rs 1,00,000 immediate relief fund for employees’ families in the event of a fatality. Moreover, it has committed to launching a “People First Promise” programme, under which workers can submit feedback to improve workplace conditions.

The CITU had underscored stark wage disparities, pointing out that Samsung workers in Seoul earn between Rs 4.5 lakh and Rs 6 lakh per month when converted in Indian currency, while their Indian counterparts receive a fraction of that — Rs 20,000 to Rs 25,000 per month. Consequently, the workers’ union had proposed a gradual wage increase to Rs 36,000 a month over the next three years.