What is the Samsung workers strike in Chennai about
What's the story
Over 1,500 striking workers at the Samsung Electronics factory in southern India have turned down a settlement offer made by the company.
The strike, which started on September 9, is the largest labor dispute in India in recent years.
Housed in makeshift tents close to the factory, located near Chennai, the workers, who account for more than 80% of the workforce, are demanding higher wages and Samsung India Workers Union (SIWU) recognition.
Production halt
Strike disrupts production at key Samsung factory
The plant is a key part of Samsung's strategy, accounting for nearly one-fifth of its $12 billion India sales in 2022-23.
Samsung offered a monthly incentive of ₹5,000 ($60) till March, more AC buses for transport, a varied cafeteria menu, and a $24 gift card for childbirth, Reuters reported.
However, the offer was turned down by the Centre of Indian Trade Unions (CITU), which is backing the protests, citing Samsung's failure to address the recognition of the SIMU.
Rejected proposal
Samsung's settlement offer falls short of workers' expectations
"We will continue striking. We will intensify our protest to put pressure on the government," A Soundararajan, state president of CITU told Reuters.
The striking workers, who earn an average monthly salary of ₹25,000 ($300), are demanding a raise of ₹36,000 spread over three years.
But Samsung has countered this by stating that the average monthly salary of full-time manufacturing workers at their plant is nearly double that of similar workers in the region.
Unmet demands
Plant employs some 1,800 permanent workers
The plant in question employs some 1,800 permanent workers and makes refrigerators, TVs, and washing machines.
It is one of Samsung's two factories. The other factory in Uttar Pradesh, which makes smartphones, has had no unrest.
The strike comes after Samsung's largest union in South Korea went on strike for four days in August, demanding increased wages and bonuses after negotiations with management failed.