Samsung India Strike Enters Week 3

Matthew Gupta
Tech Editor

Over 1,000 Samsung employees in India have been on strike for nearly three weeks, working to gain recognition for their union and demand higher salaries. The strike is affecting one of the company’s largest plants, which is responsible for nearly $4 billion of the company’s revenue in India.

The strike began on September 9th and is occurring in a Samsung India Electronics plant in Sriperumbudur, a town in the southern state of Tamil Nadu. The employees are demanding a raise from ₹25,000, approximately $300 a month, to ₹36,000, or $430, over three years. Striking workers also hope to have the Korean tech giant recognize their They are currently being represented by the Centre of Indian Trade Unions, a national trade union in India with over 6 million members. The CITU has also been reported to have ties with the Communist Party of India, the nation’s oldest Marxist party.

As the strike has continued, many efforts have been made to alleviate the production slowdowns caused by the strike. Although the plant initially saw a drop in production between 50-70%, Samsung was able to fill in gaps in production with non-striking employees, and it now reports that production is near pre-strike levels. Samsung has also entered talks with workers’ representatives instead of working directly with the CITU. Despite these efforts, there have been many calls to end the strike immediately. The head of the Ministry of Labour and Employment, Mansukh Mandaviya, urged the government of Tamil Nadu to bring about an “early and amicable” end to the walkout. Samsung has also encouraged employees to return to work, promising that those who resumed employment will not face punitive damages. At the same time, those who continued with the strike will be removed from their positions.

This demonstration is part of a broader trend in the Indian economy, especially as labor tensions continue to grow as the fruits of “Make in India” manifest. India is one of the fastest-growing major economies in the world, averaging 6% yearly GDP growth, due primarily due to increase in its manufacturing sector. However, employees have faced challenges in this growing economy, mainly relating to wages and job security, as employers hire on a contract basis. While the largest recently, the strike follows those by employees in other electronics companies, including Foxconn and Wistron. Ultimately, these strikes pose a question as to whether employees have been considered in the nation’s race to become the largest economy in Asia.