- Samsung sues union members after an 11-day strike disrupts its only home appliance plant in India, escalating tensions.
- The strike at Samsung’s plant in Tamil Nadu poses a challenge to Modi’s ‘Make in India’ campaign, as workers demand higher wages and union recognition.
OUR TAKE
Samsung Electronics’ Indian unit is in the middle of a big labour dispute. It has filed a lawsuit against members of a labour union following an 11-day strike at its home appliances plant in Tamil Nadu. The strike, led by the Centre of Indian Trade Unions (CITU), has caused problems at the plant, which is a big contributor to Samsung’s annual revenue in India. The workers are asking for higher wages and for their union to be recognised, which Samsung is refusing. This is making it harder for Prime Minister Narendra Modi’s “Make in India” plan to attract foreign investors. I think the strike shows how tensions are growing between global companies and workers’ rights in India.
–Heidi Luo, BTW reporter
What happened
Samsung has taken legal action against striking workers at its factory in Tamil Nadu, where an industrial dispute has been going on for over 11 days. The strike, launched on 9 September by hundreds of workers, is demanding higher wages and official recognition of their union. The plant is significant, accounting for about a third of Samsung’s $12 billion in annual sales from India.
In response to the strike, according to Reuters, Samsung filed a lawsuit on 12 September seeking an injunction to stop the union’s protests, which it said were disrupting production and endangering the safety of its workers. During a court hearing, Samsung’s lawyer argued that the union’s activities were preventing other workers from working and urged mediation as a solution.
The judge overseeing the case at the Kancheepuram District Court has urged both Samsung management and the workers to find a solution quickly. Meanwhile, the union’s legal representative claims that the company has failed to adequately address the workers’ demands, further fuelling the standoff.
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Why it’s important
Samsung is facing significant labour unrest at its Tamil Nadu plant, with a strike involving over 1,000 of the 1,800 workers now in its second week. The workers, coordinated by the CITU, are striking for higher wages, from an average of 25,000 rupees a month to 36,000 rupees over three years, and for formal union recognition, which Samsung has refused. The dispute has escalated to the courts, where Samsung is seeking an injunction against the union’s protests, claiming they are disrupting operations.
Negotiations have yet to produce a solution, prompting the local judge to call for an expedited settlement. Meanwhile, Samsung’s wider operations in India face other challenges, including planned job cuts and legal scrutiny over alleged anti-competitive practices in smartphone launches. This labour dispute is one of the largest in India’s recent history and signals deepening problems within Samsung’s local operations.
