Samsung’s Sriperumbudur plant in southern India, a key facility responsible for producing a range of electronic goods, faces significant disruption as hundreds of employees strike for higher wages. The plant, employing 1,800 workers, contributes between 20% to 30% of Samsung’s $12 billion revenue in India, making the disruption particularly critical.
Key details:
- Strike demands: Workers are pressing for higher wages, improved working hours, and formal recognition of their union. They have aligned with the Centre of Indian Trade Unions, pushing Samsung to acknowledge the union’s legitimacy.
- Impact on production: Around half of the factory’s daily output has been impacted as workers have stayed off the job. This comes at a crucial time ahead of the festive season when electronic sales typically spike. The strike is expected to continue into its third day as no resolution has been reached.
- Management response: Samsung’s Southwest Asia CEO, JB Park, and other senior executives are in India trying to resolve the crisis. While management has been in discussions with union leaders, no deal has been struck. Samsung has yet to make a formal comment on the progress of negotiations.
- Workers’ perspective: Employees have voiced their dissatisfaction, demanding equal pay for those with similar levels of experience. One anonymous worker said, “If they (Samsung) had given us a living wage and treated us with respect, we wouldn’t have thought of joining a union.”
- Political support: Local political leaders have joined the protests, offering support to the striking workers. They have urged state labour officials to mediate discussions fairly without favouring management.
The timing of this strike could have a significant impact on Samsung’s ability to meet demand during the festive season in India, potentially affecting both revenue and consumer trust. With negotiations ongoing, the situation remains uncertain, and the outcome will determine whether the company can avoid prolonged disruption.
