Samsung Strike Continues As Union Recognition Dispute Persists

After weeks of strikes and negotiations, Samsung India has reached a settlement agreement with some of its employees. However, the Centre of Indian Trade Unions (CITU) announced that the strike will continue as the key demand for the recognition of the newly formed Samsung India Workers’ Union (SIWU) remains unmet.

Hundreds of employees at Samsung’s Sriperumbudur plant began striking in early September, demanding equal pay and better working conditions. Despite the ongoing strike, around 200 employees who did not participate were brought to the secretariat for a meeting with ministers, resulting in a Memorandum of Understanding (MoU) between the management and a portion of the workforce.

The MoU outlines Samsung’s commitment to improving working conditions and includes the introduction of a Rs 5,000 monthly 'Productivity Stabilization Incentive' from October 2024 to March 2025, which will be reviewed for inclusion in the annual wage increment for 2025-26. Additionally, the company has agreed to provide Rs 1 lakh in immediate assistance to families in case of an employee’s death while in service.

However, CITU’s state president Soundararajan criticised the MoU as a "strategy" to undermine the union’s demands. He emphasised that the strike is not about wages, but about the right to form associations and collective bargaining, urging Samsung to recognise the union. The workers’ key demands include reducing working hours, a five-day work week, extended paternity leave and enhanced compensation for workplace fatalities.

The SIWU, affiliated with the CPI(M)-backed CITU, has also filed a petition in the Madras High Court, citing delays in the registration of the union. The court has given the state government until mid-October to resolve the matter.

Despite the strike, Samsung has managed to continue production by employing contract staff, mitigating potential disruptions at the Sriperumbudur plant, which plays a significant role in Samsung’s $12 billion annual revenue in India.