Multitudes of employees stage a walkout at a prominent Samsung manufacturing facility in India.
On Tuesday, employees at a significant Samsung Electronics facility in southern India initiated a strike for enhanced wages, causing operational interruptions. This strike occurred as top executives endeavored to resolve this uncommon instance of labor upheaval.
Samsung, a South Korean corporation, is India's chief consumer electronics business, competing fiercely with entities such as LG Electronics to produce a myriad of products, including televisions, refrigerators, and smartphones.
The strike-affected plant situated in Sriperumbudur, the smaller of Samsung's twin Indian manufacturing facilities, employs approximately 1,800 individuals and produces electronic devices, not smartphones.
Despite focusing on mobile manufacturing, this plant accounts for 20% to 30% of Samsung's annual $12 billion revenue in India, according to two insiders with firsthand knowledge, who requested anonymity.
Posters proclaiming "Indefinite Strike" were seen outside the plant neighboring Chennai, where hundreds of workers in their corporate attire pitched tents to shield themselves from the heat.
Union representative E. Muthukumar informed Reuters that the strike would continue for a third day on Wednesday.
Approximately half of the factory's daily production was impacted when many workers remained absent on Monday. The protesters persisted in pushing for increased wages, improved work hours, and most crucially, they demanded Samsung's recognition of their union backed by the Centre of Indian Trade Unions group.
Samsung Electronics shares closed 1.9% lower in Seoul, contrasting the benchmark Kospi's 0.5% decrease.
Samsung's Southwest Asia CEO, JB Park, along with senior executives, are reportedly in attendance at the plant to produce a resolution, according to insiders with knowledge of the situation. Park manages the India market for Samsung from Gurugram, near New Delhi.
Samsung declined to comment on a request for comment. Muthukumar stated that no agreement had been reached during Tuesday's talks with Samsung management.
Labor secretary Tamil Nadu Veera Raghava Rao confirmed that negotiations between workers and management are ongoing, but a resolution has not materialized yet.
A representative of Samsung India expressed on Monday that the company engages actively with workers to address any concerns and adheres strictly to all laws and regulations.
Over 800 workers signed a register outside the plant to register their protest.
The strike precipitates just before India's festive season, during which consumers indulge in shopping for gifts or personal use, enticed by manufacturers' discounts.
According to Prabhu Ram, a vice president at Cybermedia Research, "A strike at this juncture poses a challenge to Samsung's production escalation before the crucial festive season sales commencing October."
In South Korea, Samsung Electronics' principal labor union consisting of 36,500 members, who have been advocating for greater wages and benefits, had conducted a strike for several days in July and August.
In late July, however, Samsung asserted that the action did not disrupt production in South Korea.
In India, their employees demand equal compensation for individuals with equal experience duration, as per at least six employees who spoke anonymously.
According to one worker on the factory premises, "If Samsung had offered us a decent wage and respected us, we wouldn't have sought unionization."
These concerns were seconded by certain Indian political leaders who attended Tuesday's protest.
A poster outside the factory implored labor officials not to support management, instead advising, "Discuss and solve labor union demands with union officials."
The tech giant Samsung, known for its business in consumer electronics, is facing operational challenges due to the strike at its facility in India. Samsung's Southwest Asia CEO, JB Park, is actively involved in resolving this issue, recognizing the potential impact of thetech-related disruption on their business operations.
