Decoding the workers strike at Samsung India in Chennai
Oct 18, 2024
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A. Soundararajan, honorary president of the newly formed Samsung India Workers Union and head of Tamil Nadu's CITU, shares crucial insights into the recent 38-day workers' strike at Samsung's Chennai factory. He discusses the pressing demands for better working conditions, overtime pay, and recognition of the workers' union. Soundararajan highlights the long-standing dissatisfaction among employees and the resistance faced from management regarding unionization. He also sheds light on the challenges of securing union recognition amid government and police opposition.
Workers at Samsung India's Chennai facility protested for better conditions, fair overtime pay, and union recognition, reflecting deep-seated grievances since 2007.
Despite Samsung's $198 billion revenue, the management's refusal to acknowledge the newly formed union exacerbates labor unrest, highlighting broader implications for workplace dynamics.
Deep dives
Labor Unrest at Samsung India
Workers at Samsung India's Chennai facility engaged in a 38-day strike, demanding better working conditions, fair overtime pay, and recognition of their newly formed union, the Samsung India Workers Union (SIWU). This protest is notable as it represents the second longest labor action in the past 15 years at the Sri Perambhatur manufacturing hub, trailing only behind a 50-day strike at Royal Enfield. Despite Samsung's substantial financial success, generating around $198 billion in 2023, the workers express longstanding grievances dating back to the establishment of the factory in 2007. The formation of SIWU, which now includes over two-thirds of the workforce, highlights growing discontent and the desire for improved labor rights.
Inequities in Salary and Working Conditions
The employees’ primary grievances revolve around wage discrepancies and inadequate working conditions, where individuals performing the same job receive unequal pay based on arbitrary assessments rather than standardized evaluations. Many workers remain in temporary positions for years before attaining permanent status, often working long hours exceeding the standard eight-hour shift without proper compensation for overtime. The average salaries reported also reveal significant anomalies, with some long-term employees earning as little as 24,000 rupees while others - potentially with less experience - claim salaries significantly higher. Compounding these issues are reported shortcomings in workplace facilities, including insufficient restroom provisions and lack of transportation accommodations, such as air-conditioned buses for laborers who travel long distances to the factory.
Union Recognition and Government Involvement
The call for union recognition is met with staunch resistance from management, complicating discussions concerning workers' rights and leading to a protracted conflict. Government involvement in mediating the situation appeared limited, as there were indications of a preference to avoid supporting the union's registration, which prolonged the strike and heightened tensions. This resistance from both the management and the government suggests a broader concern about the potential implications for labor relations in other companies if the union is recognized. The workers and union leaders argue that establishing a union could ultimately promote healthier workplace dynamics, leading to increased productivity and improved employee satisfaction across the board.
In this episode, we are in conversation with A. Soundararajan, the honorary president of the recently formed Samsung India Workers Union to better understand the reasons for the labour unrest at one of the South Korean manufacturing giant’s flagship facilities near Chennai. The 38-day-long workers strike at Samsung India’s factory, which produces a range of products from LED TVs to 5G technology components for the domestic and global market, is the second-longest labour protest in the past 15 years at the Sriperumbudur and Oragadam manufacturing hub in Chennai’s outskirts. The only strike that lasted longer was at the iconic motorbike maker Royal Enfield, also located in the same region. That strike lasted 50 days in 2018. The issues have been similar—better working conditions, honouring overtime pay, and crucially—the recognition of the worker’s union. Samsung is South Korea’s largest family-run business. Its consolidated revenue in FY2023 was approximately $198 billion—more than a tenth of South Korea’s 1.71 trillion dollar GDP for FY 2023. Located on a 22-acre campus the Sriperumbudur facility is one of two factories operated in India. The other is in Noida. Operating since 2007, the Chennai factory now employs about 1800 workers. They recently formed the Samsung India Workers Union, or SIWU – that represents more than two-thirds of the workers, and SIWU has petitioned the Madras High Court seeking registration of the union. Talking to The Hindu, SIWU’s honorary President, A. Soudarajan, who also heads the Tamil Nadu unit of the Centre of Indian Trade Union - says workers discontentment has been brewing at Samsung almost right from the facility was established in 2007, and that the month-long strike was its manifestation. He gave me an overview of the issues and explained why the workers sought CITU’s intervention. Mr. Soundararajan spoke to us en route to SIWU’s general body meeting in Kancheepuram, where the strike was eventually called off by a unanimous show of hands.
Guest: A. Soundararajan, Samsung India Workers Union’s honorary President
Host: Kunal Shankar
Edited by Sharmada venkatasubramanian.
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