Workers’ strike hit production at Samsung’s Chennai unit, output disrupted | Company News

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Interestingly, SIWU was formed in July with CITU backing at the South Korean electronics giant’s factory in Sunguvarchatram, near Sriperumbudur | (Photo: Reuters)


Around 85 per cent of the total 1,700 employees at the Samsung Electronics manufacturing unit in Sriperumbudur, approximately 40 kilometres from Chennai, continued their strike for the second day on Tuesday, affecting the operations of the unit. The workers’ demands include a wage hike and the freedom for the workers’ union to function within the plant.


The unit manufactures televisions, colour monitors, refrigerators, and washing machines. According to E Muthukumar, a Centre of Indian Trade Unions (CITU) leader from Kancheepuram district and president of the Samsung India Workers’ Union (SIWU), around 85 per cent of the workers are participating in the strike. A Samsung India spokesperson stated that the welfare of its employees is among its top priorities.

 


Interestingly, SIWU was formed in July with CITU backing at the South Korean electronics giant’s factory in Sunguvarchatram, near Sriperumbudur. At that time, the union also extended solidarity to 30,000 striking Samsung workers in Seoul, South Korea.


“We want an increase in average wages from Rs 25,000 to Rs 36,000. Additionally, the working hours of employees should be eight hours as per the Factory Act, and they should not be forced to work for 11 hours unless some workers are doing overtime with consent,” Muthukumar told Business Standard.


“At Samsung India, the welfare of our employees is our top priority. We actively engage with our workers to address any grievances they may have and comply with all laws and regulations. We will also ensure that there is no disruption to our consumers,” said a Samsung India spokesperson.


Currently, the company has two manufacturing units in India: one in Noida and one in Sriperumbudur. According to media reports, the Sriperumbudur plant contributes around 20-30 per cent of Samsung’s $12 billion annual revenue in the country.


In South Korea, Samsung Electronics’ largest workers’ union, which has been demanding higher wages and benefits, held a strike for several days in July and August. “We also want the company to allow unions to function at the unit. Moreover, employees should be given jobs based on their expertise,” Muthukumar added.


Established in 2007, the manufacturing facility in Sriperumbudur produces luxury QLED TVs, The Frame lifestyle TV, innovative Curd Maestro refrigerators, AI Ecobubble washing machines with a bilingual user interface, and WindFree ACs among its key products. Some of these innovative digital appliances are exported to other countries.


Since its entry into India in 1995, the company has consolidated its market leadership with two factories (in Noida, near New Delhi, and in Sriperumbudur), five R&D centres, and one design centre. These are supported by a strong network of over 200,000 retail outlets and more than 3,000 customer service points.

First Published: Sep 10 2024 | 2:44 PM IST

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