Samsung India vs union: High-stakes showdown in small factory town

Crucial negotiations tomorrow; workers threaten to lock factory gates

“Disciplinary action, go back! Go back!”

 

The slogan rang through the air as around 200 workers and their families gathered in protest against Samsung India’s management, braving the scorching heat in Sunguvarchatram, just two kilometres from the company’s Sriperumbudur unit at Sipcot Industrial Park. The demonstration, now in its second week, showed no signs of slowing down.

 

Come Wednesday, the protest may escalate. “We are going to have a discussion with the management on Wednesday. Depending on their response, our reaction will follow. The CITU’s (Centre of Indian Trade Unions’) reaction will be very dangerous,” said E Muthukumar, Samsung India Workers’ Union (SIWU) president and CITU Kancheepuram district secretary, addressing the crowd.

 

Despite the strike, production at the factory remained unaffected, as the management had deployed contract workers, the protesters claimed, decrying any such move “illegal”.

 

The union vowed to physically lock the factory gates on February 21, determined to block the entry of “illegal contract” workers.

 

Samsung, however, insisted it is working toward “a collective agreement” with its workers while also filing official complaints against those accused of breaching company policy. “They will be subject to appropriate disciplinary action following a formal inquiry and (they) have been suspended to protect the work environment and other workers,” a company spokesperson stated.

 

From a distance, the protests in Sunguvarchatram might seem like a minor dispute in a small industrial town. But for Samsung, the ramifications are substantial. The Sriperumbudur unit, responsible for manufacturing refrigerators, televisions, and washing machines, contributes significantly to the South Korean giant’s $12 billion revenue in India.

 

Beyond that, this belt — just 50 kilometres from Chennai — houses over 600 manufacturing facilities, including those of Hyundai, Foxconn, and Saint-Gobain, forming a crucial node in the region’s industrial economy.

 

Since February 5, 600 SIWU members have been on a strike within the premises of the Samsung India Electronics facility. The flashpoint: The suspension of three union leaders. A management source claimed the disciplinary move was provoked by a group of employees attempting to force a meeting with a senior executive at the unit.

 

“We are not backing down from our demand: The removal of disciplinary action against our employees,” said a worker from the main production line, his identity card dangling from a lanyard. Another worker added, “Another 200 workers continue to protest inside the Samsung unit itself.”

 

Muthukumar, in his speech, assured employees that solidarity was growing, with workers from industrial parks like RNS SIPCOT, Vallam Vadagal, Irungattukottai, and Mambakkam set to stage protests in support of Samsung’s labour force. Meanwhile, the company reiterated its commitment to resolving the dispute through a “collective agreement” and government-facilitated dialogue.

 

“If the talks on February 19 don’t go in our favor, we will march to the Samsung unit on February 21 with locks. Illegal work using contract labour will not be allowed,” declared A Jenitan, a senior CITU leader from the region.

 

Sriperumbudur, traditionally an automobile and electronics manufacturing hub, has seen labour unrest before. The current dispute follows a 37-day strike last year that partially disrupted Samsung’s production.

 

Employees claim the company is pressuring them to join a management-formed committee despite SIWU’s formal recognition. Reports suggest Samsung offered an interest-free loan of up to ₹3,00,000 to workers willing to join the committee.

 

“The company is continuing to make efforts towards a collective agreement with our workers and has not forced any employee to join the worker committee or leave the union,” said the Samsung spokesperson. “Our global code of conduct stipulates that the company has a zero-tolerance policy for any type of behaviour that goes against maintaining a professional and respectful workplace environment.”

 

Samsung has formally lodged complaints against certain employees accused of misconduct. The suspended employees violated company policy and will face appropriate disciplinary action following an inquiry, the spokesperson said. “This legitimate measure was taken in accordance with all applicable Indian laws. Despite the illegal action by some, most of our workers remain dedicated to ensuring that normal business operations continue.”

 

Neither side appeared willing to yield. If the upcoming negotiations falter, tensions are poised to rise, setting the stage for an even fiercer showdown.