Updated New Delhi, September 20, 2024
Samsung Electronics has issued a stern warning to its striking workers in southern India, stating that they will not receive wages if the protests continue, and could face termination as tensions escalate over labor demands.
Since September 9, hundreds of workers at Samsung’s home appliances factory near Chennai have disrupted operations, protesting for higher wages and the recognition of a union at the plant, which contributes significantly to Samsung’s annual revenue in India, estimated at $12 billion.
In an email sent to striking employees, Samsung’s HR team classified the ongoing protests as an “illegal strike,” emphasizing that those participating would not be entitled to wages during the period of protest. The email read: “You shall not be entitled to wages from 09.09.2024 to the date you report back to work on ‘No work No Pay’ basis.” It further warned that employees who fail to return to work within four days would need to justify their continued absence to avoid dismissal.
This development follows Samsung’s legal action against the protesting union, seeking a temporary injunction to limit public demonstrations and speeches near the factory. However, a local judge has called for a swift resolution rather than granting the injunction.
Despite the heightened tensions, Samsung has indicated that it remains open to dialogue with workers. In a previous statement, the company expressed its commitment to resolving all issues promptly. However, the striking workers, supported by the powerful labor group CITU, demand a pay raise from their current average salary of 25,000 rupees ($300) per month to 36,000 rupees ($430) over the next three years.
CITU has been instrumental in mobilizing the workers, and they have stated that negotiations with Samsung and state officials have so far failed to yield a satisfactory outcome. As the dispute continues, the future of the negotiations remains uncertain, with Samsung’s refusal to recognize any union backed by national labor groups adding another layer of complexity to the situation.
With work still disrupted and workers standing firm in their demands, the resolution to this labor conflict appears to hinge on the willingness of both parties to engage in meaningful dialogue.
