Samsung says workers ending strike at its southern Indian factory

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The strike at the plant, backed by the Centre of Indian Trade Unions (CITU), was the biggest such dispute in recent years in the country.

The strike at the plant, backed by the Centre of Indian Trade Unions (Citu), was the biggest such dispute in recent years in the country.

PHOTO: REUTERS

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- Workers of Samsung Electronics’ Indian unit have decided to end a strike at its factory in the southern Indian state of Tamil Nadu, the company said on Oct 15, ending a labour protest that had continued for more than a month.

The strike at the plant, backed by the Centre of Indian Trade Unions (Citu), was the biggest such dispute in the country in recent years and cast a shadow over Prime Minister Narendra Modi’s drive to draw investors to set up local manufacturing.

Samsung India in a statement on Oct 15 said it welcomed the decision by Citu to call off the strike at the plant, which employs about 1,800 workers and makes refrigerators, TVs and washing machines.

The company did not disclose the terms of the settlement.

“We will not take action against workers who merely participated” in the strike, Samsung India said, without saying whether it is planning any action against certain workers.

Earlier, Samsung sued members of the striking union in a local court as tensions rose.

The Tamil Nadu government confirmed the strike has ended, saying representatives from Samsung management and striking workers took part in the talks. In a statement, Tamil Nadu state minister T.R.B. Rajaa said Samsung “announced several welfare measures in the interest of the workers”.

More than 1,000 Samsung India workers have held protests close to the factory near Chennai in Tamil Nadu since Sept 9, demanding higher wages and recognition of their union.

The strike marked the conglomerate’s latest outbreak of employee discontent, with thousands of unionised workers striking in South Korea in July over pay and benefits.

The plant in Tamil Nadu is critical to Samsung’s ambitions and accounted for roughly one-fifth of its US$12 billion (S$15.7 billion) India sales in 2022-23. It is one of Samsung’s two factories in India.

Citu will make an official announcement on Oct 16, union leader E. Muthukumar told Reuters.

Samsung workers earn 25,000 rupees (S$390) on average each month and were demanding a raise of 36,000 rupees a month spread over three years, according to Citu.

Samsung previously said the average monthly salary of full-time manufacturing workers at the plant is nearly double that of similar workers in the region. REUTERS, AFP

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