India, Sept 11 (Alliance News): Samsung Electronics’ plant in Sriperumbudur, southern India, faced significant disruptions on Tuesday as hundreds of employees went on strike demanding higher wages and recognition of a labor union.
The plant, which produces electronic products and not smartphones, is critical to Samsung’s operations in India, contributing 20% to 30% of the company’s annual revenue of $12 billion in the country.
Workers set up tents outside the factory to shield themselves from the heat and displayed posters declaring an “Indefinite Strike.” The strike, which began on Monday, has already affected about half of the plant’s daily production, and the workers have vowed to continue their protest until their demands are met.
The key issues include better wages, improved working hours, and formal recognition of a union supported by the Centre of Indian Trade Unions.
Samsung’s Southwest Asia CEO, JB Park, along with other senior executives, is on-site to resolve the issue. However, no settlement had been reached as of Tuesday evening.
The strike’s timing is particularly impactful as it coincides with India’s festive season, a crucial period for consumer electronics sales.
The disruption comes as Samsung prepares for a ramp-up in production to meet increased demand during this period.
Shares of Samsung in Seoul fell by 1.9% in response to the strike, compared to a 0.5% decline in the benchmark Kospi index. Samsung has stated that it is actively engaging with workers to address their grievances and is complying with all relevant laws and regulations.
This labor unrest in India follows a recent strike by Samsung’s largest worker union in South Korea, which also demanded higher wages and benefits.
Although the South Korean strike did not disrupt production, the situation in India highlights ongoing global labor challenges for the tech giant.
