28 days on, no end in sight to strike at Samsung's Sriperumbudur plant

Sources aware of the talks among the state government, employees, and the company blame Citu, which is leading the protests, for the impasse

Even after 28 days, the strike at the Sriperumbudur plant of Samsung Electronics is yet to see its end.

Sources aware of the talks among the state government, employees, and the company blame the Centre of Indian Trade Unions (Citu), which is leading the protests, for the impasse.

According to a government source, although the company has shown willingness to talk to its workers and accept their key demands, it is Citu that is causing a roadblock to a solution.

“Citu wants its union to be accepted and insists that talks should be held only with their leaders, who are not Samsung employees,” said the government source.

On Saturday, Chief Minister M.K. Stalin directed industries minister TRB Rajaa, micro, small, and medium enterprises (MSME) minister TM Anbarasan, and labour minister CV Ganesan to lead talks in order to find an early solution to the issue.

Interestingly, another source indicated that Samsung's production has not been significantly affected by the strike.

Nearly 1,500 workers went on strike at the South Korean group’s plant on the outskirts of Chennai on September 9.

They demanded higher wages, recognition for their union, and better amenities, among other demands.

“The average monthly salary of our permanent manufacturing workers at the Chennai plant is 1.8 times that of similar workers employed in the electronics sector. Our workers are also eligible for overtime pay and other allowances. The company provides a workplace environment that assures the highest standards of health, safety, and welfare, including free shuttle buses and meals,” said a company statement.

The major bottleneck, according to sources, is that Citu wants talks to involve Samsung India Workers' Union (Siwu) president E. Muthukumar, a veteran Citu leader, who is not an employee of the company.

On the other hand, the company is clear that it is not ready to negotiate with a third party. When asked about this, a union leader had said, “Citu means workers.”

Citu claims that workers face long working hours, intense pressure to finish products like refrigerators, washing machines, or TVs within 10-15 seconds. They have non-stop work for 4-5 hours at a stretch, and unsafe working conditions.

Last week, around 600 workers and union members were arrested for organising a street protest.

Samsung, on the other hand, asserts that its workers receive various perks, including Diwali gifts (Samsung products worth Rs 5,000-10,000). They can also avail the employee purchase discount program (up to 50 per cent), health insurance for employees and dependents, and long-term service allowances (10 years, 15 years or 20 years), among other benefits.

According to Citu, Samsung workers in Seoul receive Rs 4.5-6 lakh on average in wages and salaries per month while their Indian counterparts work for a meagre Rs 20,000-25,000.

“The average tenure of its manufacturing workforce is more than 10 years, which underscores the satisfaction its workers have in working for the company. There are over 900 workers with more than 10 years of service, whose average salary is around Rs 40,000 per month before other perks. In fact, the longest-serving operators in the company are earning as much as Rs 69,000 before adding other perks,” said a government source, quoting the company.

Tightrope Walk
 

Citu claims Samsung workers in Seoul receive Rs 4.5-6 lakh in wages and salaries per month, while their Indian counterparts work for a meager Rs 20,000-25,000
 

Samsung states workers at the Chennai plant is 1.8 times the average salary of similar workers employed in the electronics sector
 

According to Samsung, there are more than 900 workers with over 10 years of service, whose average salary is around Rs 40,000 per month 
 

There is only one worker, who, after 10 years of service, has a salary of around Rs 24,000 per month before other perks, due to efficiency and attendance reasons, say sources