Workers at the Samsung Electronics factory in Tamil Nadu have been on strike for three weeks now, demanding better pay. Even warnings of salary cuts have not deterred them.
The South Korean electronics giant, however, draws attention to the fact that these striking workers earn an average monthly income that is 1.8 times more than what workers in other factories in the region earn.
Additionally, Samsung has pointed out that the workers are given overtime pay, and assured of a safe and healthy work environment.
Earlier this month, Samsung India’s plant at Sriperumburudur, Chennai saw at least half of its 1800-strong workforce going on an indefinite strike, demanding better wages. As the strike continues, the workers are also seeking better working hours and want the company to recognise their union. The workers who earn an average monthly salary of Rs 25,000 are seeking Rs 36,000 per month over a period of three years.
As this strike comes just before the festive season, when the demand for electronic items for gifting purpose increases, the reduced production is certainly having an adverse effect on the company’s revenues. The facility is responsible for at least 20 per cent of the South Korean company’s revenues in India ($12 billion) every year.
Samsung is keen to discuss the matter with the workers so that work can resume at the earliest.
The strike, said to be the biggest in the country in recent times, does not augur well for foreign investors seeking to invest in the country or set up their units here.
Among other things, the Samsung workers are reportedly demanding that those with the same level/length of experience be paid the same remuneration. Their union, which was formed a couple of months ago is yet to be formally registered. The workers reportedly feel that the management is not keen to recognise the union. According to some media reports, the workers wish to discontinue the practice of overtime, but the management has not paid heed to this demand either.
