Samsung Electronics Faces Major Disruption in India Amid Prolonged Worker Strike
For the past 11 days, around 1,500 workers at Samsung Electronics’ Chennai plant in Tamil Nadu have been on strike, causing significant disruptions to production. The Chennai facility, one of Samsung’s two factories in India, employs nearly 2,000 workers and is crucial to the company’s revenue, contributing about a third of its annual $12 billion (£9 billion) earnings from India.
The striking workers are demanding recognition of their newly-formed union, the Samsung India Labour Welfare Union (SILWU). They argue that only a union can effectively negotiate better wages and working conditions. The protest, one of Samsung’s largest in recent years, comes amid Prime Minister Narendra Modi’s efforts to attract foreign investment by positioning India as an alternative to China for manufacturing.
Samsung India has stated that worker welfare is a priority and that discussions are ongoing to resolve the issues. “We have initiated discussions with our workers at the Chennai plant to resolve all issues at the earliest,” the company said.
Earlier in the day, police detained around 104 workers for participating in an unauthorized protest march but released them later. The workers have vowed to continue their strike indefinitely until their demands are met. According to A Soundararajan from the Centre of Indian Trade Unions (CITU), which supports the new union, the workers are asking for union recognition, collective bargaining rights, and the exclusion of competing unions. About 90% of the workforce is reportedly aligned with SILWU.
The striking workers, who earn an average monthly salary of 25,000 rupees ($298; £226), are seeking a 50% raise over the next three years. They also allege unsafe working conditions, including excessive pressure to meet production targets and prolonged work hours without adequate breaks. Samsung India has denied these allegations, asserting that all workers receive suitable breaks and work in compliance with labor laws.
Tamil Nadu’s Labour Welfare Minister CV Ganesan has assured union officials that talks are underway to address their concerns. “We will fulfill the demands of the workers,” he said.
The protest highlights ongoing issues in India’s labor market, where multinational corporations often face criticism for inadequate labor practices. Labor economist Shyam Sundar notes that firms frequently use strategies to prevent unionization, such as promoting internal, company-controlled unions over external ones. He also points to the rise of contractual labor, which can be used to maintain a more compliant workforce.
As global companies, including Apple and Amazon, establish operations in India, labor rights activists argue that many underpay and overwork employees while resisting compliance with local labor laws. The situation at Samsung’s Chennai plant reflects broader challenges facing workers in India’s rapidly evolving industrial sector.
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