Sriperumbudur strike: Samsung signs MoU, agrees to Rs 5K special incentive

In a major breakthrough regarding the ongoing strike at Samsung Electronics' Sriperumbudur plant, the company signed a memorandum of understanding (MoU) with representatives of its workmen, excluding the Centre of Indian Trade Unions (Citu), the union leading the protests.

As part of the agreement, Samsung agreed to pay a special incentive of Rs 5,000 for a few months to its employees.

This incentive is in addition to several other measures aimed at improving working conditions.

According to the MoU, the company will provide a productivity stabilisation incentive of Rs 5,000 per month, starting from October 2024 through March 2025.

During wage negotiations with employees, this special incentive will be considered for the annual wage increment for 2025-26.

“Samsung India on Monday signed a memorandum of agreement with the workmen committee of its Chennai factory. Both parties agreed on collaborative efforts to make the Chennai factory a great place to work. We will engage with workmen directly to address the difficulties they face. We will also work with them for the development of the community in Chennai as a responsible company,” the company said in a statement.

The development occurred after Industries Minister TRB Rajaa, micro, small, and medium enterprises (MSME) Minister T.M. Anbarasan, and Labour Minister CV Ganesan held talks with various stakeholders for more than six hours on Monday at the secretariat.

"We are cognizant of the Tamil Nadu government's efforts to end the illegal strike and are thankful to the authorities for their constant support. We reiterate that we comply with all laws and regulations of the country,” the company added. As part of the MoU, the company also agreed to expand air-conditioned bus services from the current five routes to all 108 routes by next year.

In the unfortunate event of an employee's death, Samsung will provide immediate relief of Rs 100,000 to the family.

The company also agreed to launch the MD’s People First Promise programme and introduce a channel to collect feedback from workmen to further improve working conditions.

Nearly 1,300 workers went on strike at the South Korean group's plant on the outskirts of Chennai on September 9.

They demanded higher wages, recognition of their union, and better amenities, among others.