Samsung Workers Detained in India Amid Ongoing Wage Dispute

Indian authorities detain 600 Samsung employees protesting for higher wages. The month-long strike at the Tamil Nadu plant impacts operations, challenging Modi's "Make in India" initiative.

October 1 2024, 07:46 AM  •  656 views

Samsung Workers Detained in India Amid Ongoing Wage Dispute

In a significant development, Indian authorities have detained approximately 600 Samsung Electronics workers and union members for organizing a street protest. This action comes as the strike at the South Korean tech giant's home appliances plant in Tamil Nadu enters its fourth week, highlighting ongoing labor tensions in the region.

The protest, which began on September 9, 2024, has seen over 1,000 workers disrupting operations at the facility near Chennai. Their primary demands include higher wages and union recognition. This plant is crucial to Samsung's Indian operations, accounting for roughly a third of its annual $12 billion revenue in the country.

Charles Sam Rajadurai, a senior state police official, stated that the detentions were carried out due to the inconvenience caused to the public by the protest march. The detained individuals, including Samsung employees and members of the Centre of Indian Trade Unions (CITU), are being held in four wedding halls.

This is not the first instance of police intervention during the strike. On September 16, 2024, authorities had previously detained 104 striking Samsung workers for almost a day.

The ongoing labor dispute casts a shadow over Indian Prime Minister Narendra Modi's "Make in India" initiative, which aims to attract foreign investment and boost domestic manufacturing. It represents one of the most significant industrial actions in India in recent years.

Image

Samsung, founded in 1969 as a small trading company, has grown to become the world's largest manufacturer of consumer electronics by revenue. The company, whose name means "three stars" in Korean, now produces about 10% of South Korea's GDP and has manufacturing facilities in over 80 countries.

In response to the situation, Samsung has stated that the striking workers risk losing their jobs. The company maintains that the average monthly salary of full-time manufacturing workers at the plant is nearly double that of similar workers in the region. Samsung has expressed openness to engaging with workers to resolve the matter.

However, according to CITU, Samsung workers currently earn an average of 25,000 rupees ($300) per month. The union is demanding a substantial raise to 36,000 rupees a month, to be achieved within three years.

This labor dispute highlights the ongoing challenges faced by multinational corporations operating in India. While Samsung has been expanding its global presence and investing heavily in research and development, it has also faced criticism over working conditions in its factories.

As the situation unfolds, it remains to be seen how this strike will impact Samsung's operations in India and the broader implications for foreign investment in the country's manufacturing sector. The resolution of this dispute could set a precedent for labor relations in India's growing electronics manufacturing industry.

"Samsung workers currently earn an average of 25,000 rupees ($300) per month. We are demanding a raise to 36,000 rupees a month, to be achieved within three years."

CITU Statement