Samsung's Indian factory was hit by a strike of thousands of workers: workers demanded double wages and job security

A significant strike involving over 1,500 workers has erupted at Samsung Electronics' home appliance factory in Chennai, Tamil Nadu, India, marking one of the largest labour actions in recent years for both the local area and the company. The strike began on September 9 and has entered its third week, with tensions escalating between the workers and management.

The strike is organised by the Samsung India Labour Welfare Union (SILWU), which was recently formed with the support of the Centre of Indian Trade Unions (CITU), a labour group associated with the Communist Party of India. Reports from South Korea's National Daily and the BBC have highlighted the scale and seriousness of the situation, drawing international attention.

Key Demands of the Workers

The workers have put forth several bold demands, primarily focused on improving their compensation and working conditions:

1. Wage Increase: The striking workers are demanding a significant increase in their monthly salary from the current ₹35,000 (approximately NT$13,339) to ₹71,000 (about NT$27,058) within three years. Samsung has indicated that the average wage for factory workers in Chennai is around ₹19,000, and their current compensation is already 1.8 times the average. The company has stated that such a dramatic wage hike is not feasible.
2. Reduction of Working Hours: The workers are also advocating for a reduction in weekly working hours from the current 48 hours (six days a week) to 35 hours (five days a week). This proposal would mean a reduction from eight hours a day to seven, which would effectively raise their hourly wage even further if accepted.
3. Job Security for Families: Among the most contentious demands is the implementation of a "hereditary position" system, which would allow the family members of deceased employees to inherit their jobs, barring any disqualifying circumstances. The union also requests annual educational subsidies of ₹50,000 (approximately NT$19,000) for the children of employees to help cover private school tuition.

Concerns Over Strike's Impact on India's Manufacturing Goals

The demands have raised concerns among South Korean industry insiders, who suspect that the strike may be strategically supported by the CITU to expand its political influence, potentially jeopardising Indian Prime Minister Narendra Modi's "Make in India" initiative. This programme aims to attract foreign companies to establish manufacturing operations in India, targeting a doubling of electronic product output to $500 billion within six years.

In response to the unfolding situation, Indian federal Labour Minister has reportedly urged the Tamil Nadu government to intervene and find an amicable resolution to end the strike swiftly, indicating the importance of stabilising the workforce and maintaining foreign investment in the region.