Samsung urges Tamil Nadu to ensure business stability amid labour strike

The strike at Samsung's Sriperumbudur manufacturing facility near Chennai involves over 500 workers protesting the suspension of three office bearers of the Samsung India Workers' Union

Samsung has called on the Tamil Nadu government to uphold a "business-friendly environment" while ensuring worker safety as the ongoing labour strike at its Sriperumbudur manufacturing facility near Chennai continues to escalate, according to a report by Moneycontrol. Efforts to mediate the dispute have so far been unsuccessful.

 

“Our foremost priority is to maintain a safe and stable workplace. Certain individuals once again attempted to unlawfully hinder factory operations and industrial harmony today. We maintain a zero-tolerance policy towards any illegal actions that threaten workplace stability,” a spokesperson for Samsung India told Moneycontrol.

 

Samsung labour dispute and escalation

 

The strike, which began on February 5, involves over 500 workers protesting the suspension of three office bearers of the Samsung India Workers’ Union (SIWU). The union is affiliated with the Centre of Indian Trade Unions (CITU), a national trade union body linked to the Communist Party of India (Marxist).

 

 

A conciliation meeting between Samsung’s management and CITU representatives on February 19 ended in a deadlock, with the company refusing to revoke the suspensions. Adding to the tensions, Samsung has signalled its intention to take disciplinary action against 18 more workers, a move strongly opposed by the protesting employees.

 

The dispute has intensified following an incident on February 20 when a group of striking employees allegedly attempted to disrupt factory operations. In response, local police intervened at Vella Gate (also known as White Gate) in Kanchipuram, instructing the workers to vacate the protest site.

 

Following their removal, the demonstrators relocated to the Sriperumbudur factory premises to continue their agitation. CITU leader E Muthukumar confirmed to media outlets that the union is preparing to intensify protests over the weekend.

 

Samsung India response

 

Samsung’s Sriperumbudur plant, which employs around 1,800 workers, plays a crucial role in the company’s Indian operations. The facility produces a range of consumer electronics, including televisions, washing machines, refrigerators, air conditioners, and compressors. In the 2022-23 financial year, it accounted for nearly 20 per cent of Samsung’s total revenue of $12 billion in India.

 

While the company confirmed that production remains unaffected, it has urged state authorities to safeguard worker safety, reinforce workplace discipline, and facilitate seamless business operations. Additionally, Samsung stressed that employees must comply with company policies, warning that any breaches would be subject to disciplinary proceedings in accordance with due process.

 

With the dispute showing no immediate signs of resolution, the situation remains tense. Industry experts suggest that prolonged disruptions could impact supply chains and production schedules, potentially affecting both domestic and international markets.