Samsung India Plant Strike Hits Production - Workers Demand Higher Wages

Samsung’s India plant faces production delays due to a strike demanding higher wages. The strike impacts refrigerator and washing machine production

Sep 9, 2024 - 09:36
Sep 9, 2024 - 09:37
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Samsung India Plant Strike Hits Production - Workers Demand Higher Wages
Samsung India Plant Strike Hits Production - Workers Demand Higher Wages

Workers at Samsung Electronics' plant in Sriperumbudur, near Chennai, have initiated an indefinite strike, demanding higher wages and improved working conditions. This labor action, which began on Monday, has partially disrupted production at the facility, which primarily manufactures refrigerators and washing machines.

The strike reflects ongoing labor unrest within Samsung's global operations. Earlier this year, the company's largest union in South Korea also staged a significant strike, highlighting similar issues over wage increases and bonuses. At the Sriperumbudur plant, which employs around 2,000 workers, approximately half of the daily production capacity has been affected due to the strike, according to industry sources familiar with the situation.

Union Calls for Better Wages and Working Conditions

E. Muthukumar, the leader of the Samsung India union, reported that workers, many of whom were in their company uniforms, have been demonstrating outside the plant, demanding fairer wages and improved working hours. Muthukumar stated that the strike will continue until their demands are met, although no specific end date has been announced.

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Samsung’s Response and Impact on Production

In response to the strike, a Samsung India spokesperson emphasized the company's commitment to addressing worker grievances and adhering to all legal requirements. The company is taking measures to minimize the impact on production, including the deployment of contract workers to keep operations running smoothly. This step is particularly crucial as the company approaches the busy festive season in India, a key period for electronics sales.

Samsung, which views India as a significant market for growth, operates two major factories in the country. In addition to the Sriperumbudur plant, the company runs another facility in Noida, Uttar Pradesh, where it produces smartphones. The current strike at the Sriperumbudur plant underscores the broader labor issues facing multinational companies in the region.

As the situation evolves, Samsung will need to navigate these labor challenges carefully to maintain its production schedules and support its growth strategy in one of its most important markets.

Also Read: Amazon Aims for $5 Billion in Exports from India by 2024, Moving Away from China

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