South Korean electronics and white goods manufacturing giant Samsung is reportedly frustrated with the DMK government’s handling of the ongoing strike led by the Centre of Indian Trade Unions (CITU). The strike, which began on September 9, 2024, involves over 1,000 of the 1,800 workers at Samsung’s Sriperumbudur plant, which has been operational since 2007 and produces consumer electronics such as televisions, washing machines, and air conditioners.
The CITU is seeking various demands from the company, including the recognition of its trade union. While Samsung prefers to engage directly with its workers, CITU continues to negotiate on their behalf. As the strike enters its second month, tensions are rising as both the workers and the company await a resolution.
After several rounds of negotiations, a settlement has been reached between Samsung India’s management and the workers at its Sriperumbudur manufacturing facility regarding the ongoing strike. However, the Centre of Indian Trade Unions (CITU) announced that the strike would persist, primarily due to the company’s refusal to recognise the newly formed Samsung India Workers’ Union (SIWU) as a critical unresolved issue.
Discussions on October 7, 2024, took place at the Tamil Nadu Secretariat, attended by Tamil Nadu Labour Minister CV Ganesan, Industries Minister TRB Rajaa, and MSME Minister TM Anbarasan. Following these talks, Samsung and the workers’ committee signed a Memorandum of Agreement (MoA). Under the agreement, Samsung committed to implementing a temporary “Productivity Stabilisation Incentive” of Rs 5,000 per month, effective from October 2024 to March 2025. Future wage increases are set to be discussed in upcoming negotiations for the 2025–2026 financial year.
Following a Cabinet meeting chaired by Chief Minister MK Stalin, Tamil Nadu Industries Minister TRB Rajaa, alongside Finance Minister Thangam Thennarasu, addressed the media regarding the ongoing strike at Samsung’s Sriperumbudur facility. Rajaa emphasised that it was unjust for the strike to continue after the Chief Minister’s intervention, which included appointing three ministers to facilitate talks between the workers and management.
Rajaa stated, “Newly-weds are working for the company, and those who have completed Plus Two and ITI courses are earning Rs 70,000. There is no truth to the allegations that they are only being paid Rs 21,000.”
Despite this appeal, a faction of workers aligned with the left-controlled trade union remains dissatisfied and continues their strike. A. Soundararajan, state president of the Centre of Indian Trade Unions (CITU), declared, “We will continue striking. We will intensify our protest to put pressure on the government.” The situation remains tense as negotiations and protests unfold.
Samsung India has firmly rejected allegations that its workers earn only Rs 23,000 after more than ten years of service, calling such claims “a gross misrepresentation of facts.”
In a statement to the Tamil Nadu government, the company emphasised that the average monthly salary of its permanent manufacturing workers at the Chennai plant is 1.8 times higher than the average salary for similar positions in the electronics sector. Furthermore, Samsung informed striking workers that under their “No Work, No Pay” policy, they would not receive compensation for the duration of the ongoing illegal strike.
While the strikes have had a slight impact on the refrigerator segment, production in the air conditioning and washing machine segments remains stable. Samsung reported that operations at the Chennai factory have been sufficiently normalised to meet the increased demand associated with the upcoming festive season.
On October 9, 2024, tensions escalated at the Samsung India plant in Sriperumbudur as police arrested several protesting workers and union members, dismantling a protest pandal without prior notice. Officers conducted checks in moving buses to apprehend workers in uniform, heightening the unrest.
The situation was further aggravated by reports of the company’s alleged decision to shift its manufacturing base to Noida. Social media and visual reports have indicated that Samsung may be considering relocating its Sriperumbudur plant, with Uttar Pradesh, Andhra Pradesh, and Gujarat reportedly competing to attract the facility.
In response to the unrest, Samsung India has denied any plans for relocation, asserting that all worker demands, with the exception of union recognition, have been addressed. The state government’s perceived unfriendly stance towards the striking workers has added to the tensions in the ongoing labor dispute.
The utter incompetence of CM @mkstalin led #DMK Govt. to ensure #Samsung Plant move away from Tamil Nadu.
They’re already in talks with Gujarat, Andhra Pradesh & Uttar Pradesh Governments to shift out.
Wherever #Communists enter the place is ensured to be reduced to ashes. pic.twitter.com/IzN8YILhAS
— Dr.SG Suryah (@SuryahSG) October 9, 2024
Critics have expressed concern over the state of Tamil Nadu’s electronics manufacturing sector, alleging a disconnect between government investment efforts and on-the-ground realities. While Chief Minister MK Stalin and his officials actively pursue foreign investments, dissenting voices point to an environment that is increasingly challenging for both small and medium enterprises (MSMEs) and larger corporations.
The situation echoes past issues, such as the problems faced by Foxconn’s plant, which supplies parts to Apple, including a significant mass food poisoning incident in 2021. Political parties linked to trade unions have sought to establish a presence in the rapidly growing electronics sector, citing a lack of collective bargaining power.
The Centre of Indian Trade Unions (CITU) has focused its efforts on companies like Flex and Sanmina, a US-based electronics manufacturer, but has notably refrained from targeting Chinese mobile phone manufacturers such as Redmi, Oppo, OnePlus, and Vivo. Critics argue that should Samsung close its operations, it may inadvertently benefit these Chinese competitors in the local market.
Critics assert that leftist parties in India have lost their significance in the political landscape, alleging that they now concentrate on the industrial sector through trade unions for financial gain. They claim that the closure of industries like Sterlite, purportedly on environmental grounds, has facilitated Chinese monopolisation in copper smelting. Detractors argue that in states governed by leftist parties—such as Kerala, West Bengal, and Tripura—industrial development remains an unattainable goal, with these parties obstructing the free operation of businesses while prioritising foreign interests over local workers.
Additionally, it is noteworthy that the DMK, during its opposition phase, allegedly inflamed protests against Sterlite through proxy organisations. In April 2023, the Union Ministry of Home Affairs initiated an investigation into complaints against The Other Media (TOM), an NGO accused of misusing foreign funds to orchestrate protests. Founded in 1992, TOM has faced scrutiny regarding its funding sources, which include organisations like the World Association for Christian Communication and CORDAID from the Netherlands.
These NGOs, positioned as advocates for environmental and social justice, have been accused of exploiting social unrest to advance their agendas. Key figures involved in the Sterlite protests, including Fathima Babu, Nityanand Jayaraman, Mohan C. Lazarus, and Samarendra Das, along with groups like Makkal Athikaaram, are said to have received political support and media attention, reportedly inciting public dissent aimed at permanently shutting down Sterlite.
