Over the past 11 days, approximately 1,500 workers from Samsung Electronics have been on strike at the company’s factory in Chennai, Tamil Nadu, India, causing significant disruptions to production. This facility, one of Samsung’s two Indian plants, employs around 2,000 workers and produces home appliances, contributing roughly one-third to the company’s $12 billion annual revenue in the country.
The workers, gathering daily near the 17-year-old factory, are demanding that Samsung recognize their newly-formed union, the Samsung India Labour Welfare Union (SILWU). They believe only a union can help them negotiate for better wages and working conditions. This protest, one of the largest Samsung has experienced in recent years, comes as Indian Prime Minister Narendra Modi continues to promote India as a key manufacturing hub and alternative to China.
Samsung responded by stating that the welfare of its employees remains a top priority and that discussions with the workers at the Chennai plant have begun to resolve the issues swiftly. Earlier, police briefly detained 104 workers for marching without permission, but they were released by the evening.
According to A Soundararajan, a member of the Centre of Indian Trade Unions (CITU), which supports the new union, the workers have three main demands: Samsung must recognize SILWU, allow collective bargaining, and reject other competing unions since about 90% of the workforce belongs to SILWU. The workers, who earn an average monthly salary of 25,000 rupees ($298), are seeking staggered wage increases totaling 50% over the next three years.
CITU also accused Samsung of pressuring workers to complete tasks, such as assembling refrigerators, washing machines, or televisions, within 10-15 seconds, forcing them to work non-stop for four to five hours under unsafe conditions. They further alleged that management has been intimidating workers to leave the union, even threatening their families.
Samsung has denied these claims, asserting compliance with all labor laws. Tamil Nadu's Labour Welfare Minister, CV Ganesan, assured union officials that talks are underway to resolve the workers' concerns and that their demands would be met.
Sijo*, a protester, shared that he arrives daily at the protest site at 8:00 AM and remains there until 5:00 PM, alongside hundreds of other workers. The union provides food and water, while a temporary tent offers some protection, though there are no restroom facilities available.
Sijo explained that while workers had not needed a union previously, conditions have worsened in recent years, and their pay is no longer keeping up with the cost of living, straining their family finances. Until 2020, the Samsung Group was known for not permitting unions, but public scrutiny following the prosecution of its chairman for market manipulation and bribery led to a shift in its stance.
In India, millions of workers are part of unions, often backed by leftist parties, which leverage political influence to enforce labor laws and advocate for better working conditions. Soundararajan accused foreign companies, including Samsung, of resisting adherence to local labor laws regarding workers’ rights to unionize and bargain collectively.
Labor economist Shyam Sundar highlighted the strategies multinational corporations use to avoid unionization in countries like India. They typically oppose external, politically-backed unions and instead encourage the formation of internal, worker-led unions to maintain control over their activities. Sundar also pointed out that companies hire young, unskilled workers from rural areas with attractive starting salaries, promising permanent employment that often fails to materialize, with minimal wage growth over time.
The increasing use of "flexible" contract workers has become a tactic employed by multinational firms to curb unionization by maintaining a more compliant workforce. Government statistics show that in 2022, contract laborers made up 40% of the workforce in India's industrial establishments. Companies often discourage state governments from enforcing labor laws by threatening to relocate or halt expansion. However, workers can leverage global labor unions to press companies into complying with international labor standards.