Samsung's Tamil Nadu plant continues production amid labor strike
What's the story
Despite an ongoing labor strike, Samsung has confirmed that its goods production at the Sriperumbudur factory in Tamil Nadu is continuing as usual. The company said that the majority of its permanent and contractual employees are still reporting for duty. The announcement comes in response to a labor dispute that began on February 5 at the plant.
Legal action
Samsung files complaints against employees violating policies
Amid the labor strike, Samsung has also approached the court against some employees for violating company policies. A company spokesperson told Moneycontrol, "A section of our workers is engaged in an illegal strike within the Chennai factory premises." The spokesperson added that "most of our dedicated workers continue to ensure that production remains uninterrupted."
Production stability
Production took a hit when protest started
Despite the ongoing labor strike, Samsung has been able to keep its Sriperumbudur factory running normally. An insider from the company admitted that production did take a hit when the protest started but has since normalized. The source added, "Samsung has sufficient employees to maintain smooth operations across product lines, including contractual workers."
Economic impact
Sriperumbudur factory's significant contribution to Samsung's India sales
Employing some 1,800 workers, the Sriperumbudur factory is one of the biggest contributors to Samsung's sales in India. The facility produces a wide range of products, from televisions, washing machines, refrigerators, to air conditioners and compressors. Just in FY 2022-23, this plant accounted for one-fifth of Samsung's $12 billion sales in India.
Strike details
Ongoing labor strike and future conciliation meeting
The labor strike at Samsung's Sriperumbudur factory started on February 5, with more than 500 workers sitting on a protest. The workers are protesting against the suspension of three office bearers of the Samsung India Workers Union (SIWU), affiliated to the Centre of Indian Trade Unions (CITU). Despite multiple mediation attempts by Tamil Nadu labor officials, the dispute remains unresolved. A conciliation meeting between management and workers is scheduled for tomorrow.
Protest escalation
Hunger strike and potential escalation of labor unrest
Yesterday, striking workers and their family members held a hunger strike in Sunguvarchatram, Sriperumbudur, demanding the reinstatement of the suspended employees. The labor unrest is likely to intensify further, possibly spreading to nearby industrial hubs. This is because CITU has announced more protests on February 20 and 21.