Workers strike for higher wages at Samsung factory in India
- Hundreds of employees at a Samsung factory in Sriperumbudur, India, began striking for higher wages and better working conditions.
- The strike has disrupted production, affecting about half of the factory's output, as workers demand recognition of their union.
- Samsung's management is engaged in ongoing negotiations, but no resolution has been reached, impacting the company's operations during the festive season.
Hundreds of workers at a Samsung Electronics factory in Sriperumbudur, India, initiated a strike on Tuesday, demanding higher wages and better working conditions. The factory, which employs around 1,800 people, is crucial for Samsung's operations in India, contributing significantly to the company's annual revenue. The strike has disrupted production, with about half of the factory's output affected as workers set up tents outside to protest in the heat. Union leader E. Muthukumar stated that the strike would continue, emphasizing the workers' demands for wage equality and recognition of their union backed by the Centre of Indian Trade Unions. Samsung's management, including Southwest Asia CEO JB Park, is actively seeking to resolve the situation, but no agreement had been reached as of Tuesday. The Tamil Nadu labor secretary confirmed that negotiations are ongoing, yet there is no clear timeline for resolution. The strike is particularly impactful as it coincides with India's festive season, a critical period for consumer electronics sales, potentially hindering Samsung's production ramp-up. The protest reflects broader labor unrest, as similar demands for higher wages were seen among Samsung workers in South Korea earlier this year. Employees in India have expressed that inadequate wages and respect from the company have driven them to consider unionization. Around 800 workers have formally registered their protest, highlighting the seriousness of their grievances. As the situation develops, Samsung's response will be crucial in determining the future of labor relations at the factory and the company's ability to maintain its market position in India amidst rising competition.