Samsung Electronics’ legal battle with its Indian labour union over an 11-day strike at its Tamil Nadu home appliances factory is escalating, as revealed by recent court documents. The company has filed a lawsuit against union members leading the strike, seeking a temporary injunction to prevent further demonstrations and speech-making near its factory located near Chennai. The strike, which began on September 9, has disrupted operations at the plant, which contributes around one-third of Samsung’s $12 billion annual revenue from India.
In the legal filing dated September 12, Samsung expressed concerns that the union’s actions could endanger the factory’s smooth operations and the safety of its workers. The lawsuit urges a local district court in Kancheepuram to impose restrictions on union activities, stating that willing employees are being obstructed from working by union members. A Samsung counsel further emphasized the need for a resolution through direct negotiations between the workers and the company, while the union’s lawyer countered, arguing that management had not addressed their demands.
The dispute centers around workers’ calls for a wage increase and formal recognition of their union, which is backed by the Centre of Indian Trade Unions (CITU), a powerful labour group in India. The workers, who earn an average of 25,000 rupees ($300) per month, are pushing for a salary increase to 36,000 rupees ($430) over the next three years. With over 1,000 of the factory’s 1,800 workers on strike, the protest has gained attention as one of the largest labour actions in India in recent years.
Efforts to resolve the dispute have so far been unsuccessful. On Thursday, Judge A. Saravanakumar encouraged both parties to reach an agreement. Samsung has stated that discussions with workers have been initiated to resolve the issue as quickly as possible, but no resolution has yet been reached. The strike also comes at a time when Samsung faces additional challenges in India, including potential job cuts of up to 30% in some divisions and scrutiny from India’s antitrust body over alleged collusion with e-commerce platforms.
The labour unrest at Samsung’s Tamil Nadu plant poses potential complications for Indian Prime Minister Narendra Modi’s “Make in India” initiative, which seeks to attract foreign investment and significantly boost electronics manufacturing in the country. Samsung’s second plant in Uttar Pradesh, where smartphones are produced, has not been impacted by the strike.
As the standoff continues, both the workers and management remain at odds, and it remains to be seen if a resolution can be reached soon.
Featured Image courtesy of Indiatimes
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