Samsung India’s plant at Sriperumburudur, Chennai saw about half of its 1800-strong workforce going on an indefinite strike, demanding better wages. The workers are also seeking better working hours and want the company to recognise their union. Operations at the plant have been disturbed for over two days now.
This is a major disruption since the plant, though not as big as the other Samsung facility, is responsible for at least 20 per cent of the South Korean company’s revenues in India ($12 billion) every year. The bigger of the two plants is in Uttar Pradesh, where the focus is on production of smart phones. As this strike comes just before the festive season, when the demand for electronic items for gifting purpose increases, the reduced production will have an adverse effect on the company’s revenues.
Among other things, the 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.
Workers of Samsung Electronics in South Korea too have been seeking better wages and enhanced benefits. In fact, over 36,000 of them went on strike under the aegis of the union in July and August.