Samsung Workers in India Reject Wage Hike Offer, Strike Enters Second Month

Over 1,000 workers at Samsung Electronics' factory in southern India have rejected a wage hike offer from the company, continuing their strike into its second month. The ongoing protest, which started on September 9, is one of the largest labor disputes in India in recent years and poses a challenge to Prime Minister Narendra Modi's efforts to attract investors to boost local manufacturing.

Located near Chennai in Tamil Nadu, the factory is crucial for Samsung’s operations, producing refrigerators, TVs, and washing machines. It contributed about one-fifth of the company's $12 billion sales in India during the 2022-23 fiscal year. Despite multiple attempts to resolve the situation, Tamil Nadu state officials have not yet succeeded in ending the strike.

Workers are demanding higher wages and formal recognition of their union, staging a sit-in protest near the factory. Samsung recently proposed a settlement, offering a monthly incentive of 5,000 rupees (around $60) until March, air-conditioned buses, an improved cafeteria menu, and a $24 gift card for childbirth, according to documents reviewed by Reuters.

However, the Centre of Indian Trade Unions (CITU), which supports the striking workers, has rejected the offer, mainly because it does not recognize their union. CITU state president A. Soundararajan said on Wednesday, "We will continue striking and intensify our protest to put pressure on the government."

Samsung, in a statement, acknowledged it had reached an agreement and would continue engaging with the workers to address their concerns. The company did not comment on the strike’s continuation.

State industries minister T.R.B. Rajaa stated that Samsung had agreed to fulfill 14 demands and was open to discussing more. However, he urged workers to return to work, assuring them that all demands, including union recognition, would be considered.

Samsung workers currently earn an average monthly salary of 25,000 rupees ($300) and are pushing for a raise to 36,000 rupees over three years. Samsung maintains that the average salary of full-time workers at the plant is nearly double that of similar positions in the region.

The plant employs around 1,800 permanent workers. While this facility has seen labor unrest, Samsung’s other factory in Uttar Pradesh, which manufactures smartphones, has not faced any such issues.