Reasons for the Large-Scale Protests by Samsung Workers in India

Reasons for the Large-Scale Protests by Samsung Workers in India

For the past 11 days, around 1,500 employees of Samsung Electronics in the southern Indian state of Tamil Nadu have been on strike, causing significant production disruptions. The factory, located in Chennai, is one of Samsung's two facilities in India, employing nearly 2,000 workers and manufacturing home appliances, contributing about a third of Samsung’s annual $12 billion revenue in India.

The workers are gathering daily near the 17-year-old plant, demanding Samsung acknowledge their newly-formed labor union, the Samsung India Labour Welfare Union (SILWU). They believe the union is essential for negotiating better wages and working conditions with the company.

This strike, one of the largest Samsung has faced in recent years, coincides with Prime Minister Narendra Modi’s efforts to attract foreign investment, positioning India as an alternative to China for manufacturing. In response, Samsung India stated that the welfare of its workers remains a top priority and that discussions are underway to resolve the issues.

Earlier, around 104 workers were detained by police for participating in an unauthorized protest march, though they were released later that evening. "The workers have committed to an indefinite strike until their demands are met," said A Soundararajan, a member of the Centre of Indian Trade Unions (Citu), which supports the new union.

The workers are calling for Samsung to recognize SILWU, allow collective bargaining, and reject competing unions, as approximately 90% of the workforce is aligned with SILWU, according to Soundararajan. They are also pushing for a 50% pay increase over the next three years, with the average worker currently earning about 25,000 rupees ($298) per month.

Citu has accused Samsung of pressuring workers to meet unrealistic production targets and work in unsafe conditions for extended periods. Soundararajan also alleged that the management has pressured workers to leave the union and threatened their families.

Meanwhile, Tamil Nadu’s Labour Welfare Minister CV Ganesan has assured union officials that negotiations are in progress. "We will address the workers' concerns," he said.

Sijo, a protester, described his routine of arriving at the protest site at 8:00 a.m. and staying until 5:00 p.m. daily, alongside hundreds of other workers in Samsung uniforms. With no washroom facilities, they rely on the outdoors, while the union provides food and water for the protesters.

Sijo explained that although workers previously operated without a union, deteriorating conditions in recent years have made union support necessary. His stagnant wages have strained his family’s finances.

Up until 2020, Samsung was known for resisting union representation, but this changed after public scrutiny following the prosecution of the company’s chairman for market manipulation and bribery.

Citu’s Soundararajan alleged that many foreign companies operating in India, including Samsung, resist following local labor laws regarding unionization and collective bargaining. Labor economist Shyam Sundar pointed out that multinational corporations often employ strategies to prevent union formation, such as encouraging company-controlled unions or hiring young, unskilled workers on short-term contracts.

Contractual labor is prevalent in India, with government data showing that in 2022, two in five factory workers were hired on contract, representing about 40% of the industrial workforce. Sundar noted that companies often use the threat of relocation or withholding expansion plans to pressure governments into relaxing labor law enforcement. However, he added that workers can leverage global labor unions to compel companies to follow international labor laws.

*Name changed to protect the worker's identity.

                                                  More than a thousand workers are participating in the strike