Workers at Samsung Electronics’ factory in Tamil Nadu, India, have ended a labor strike that lasted over a month, marking one of the largest strikes the South Korean tech giant has faced in recent years. The strike, which involved around 1,500 workers in Chennai, was held to demand better wages, improved working conditions, and the recognition of a newly formed union.
According to labor activist E Muthukumar, who supported the workers during the strike, while Samsung has yet to formally recognize the union, the company has agreed to address the workers’ other demands. Muthukumar told the BBC, “We have decided to call off the protest as the Samsung management has decided to engage with workers on all key demands like higher wages, medical insurance, and better facilities.”
This protest has gained attention, as it had the potential to affect Prime Minister Narendra Modi’s efforts to position India as an alternative to China for global manufacturing. Samsung’s large presence in the Indian market makes it a significant player in Modi’s plans for India to become a global manufacturing hub. The month-long strike raised concerns about potential disruptions to this vision.
The Centre of Indian Trade Unions (CITU), a politically backed national labor union that led the protests, announced on Wednesday that the strike had been called off following a meeting between the workers and Samsung representatives. “During the meeting, it was decided that the workers would return to their jobs on Thursday,” Muthukumar explained, adding that while the issue of registering the new union, the Samsung India Labour Welfare Union (SILWU), is still pending in court, other critical issues had been addressed. “So those discussions will continue,” he said.
One of the major points of contention in the strike was the formal recognition of the union by Samsung. Workers argued that without official recognition, it would be difficult to negotiate fair wages and working hours. Muthukumar confirmed that although Samsung had not recognized the union, the company had agreed to work with workers on other important demands, signaling progress in the negotiations.
On Tuesday, before the official end of the strike, representatives of the protesting workers met with officials from the Tamil Nadu labor department. Following the meeting, Tamil Nadu’s Minister for Industries, TRB Rajaa, announced that the workers had agreed to return to their jobs immediately. Rajaa also noted that Samsung had agreed not to retaliate against workers who had participated in the strike, stating, “Samsung agreed not to victimise the workers only for having participated in the strike.”
The minister further added that the workers would fully cooperate with the management moving forward, and Samsung would issue a formal written response to the workers’ charter of demands. He emphasized that the agreement was a step towards restoring normal operations at the factory and ensuring that the workers’ grievances were heard.
Samsung also released a statement acknowledging the end of the strike. The company stated that it welcomed CITU’s decision to call off the protest and reaffirmed its commitment to maintaining positive relationships with its employees. “We will not take action against workers who merely participated in the illegal strike. We are committed to work closely with our workers to make the Chennai factory a great place to work,” the statement read.
The workers’ protest, which began on September 9, took place near the Samsung factory in Chennai, one of two manufacturing plants the company operates in India. The factory employs around 2,000 workers and is a key facility for Samsung, producing home appliances that contribute significantly to the company’s $12 billion annual revenue in India.
One of the primary motivations behind the strike was the workers’ desire to have their union recognized. Workers had expressed frustration that without a formal union, they lacked the means to negotiate fair pay and reasonable working hours with Samsung management. Akriti Bhatia, a labor rights activist, explained the broader challenges that workers face at multinational corporations like Samsung in India. She pointed out that these companies often do not fully adhere to Indian labor laws, particularly regarding the right to unionize. “Multinational companies which set up factories in India often don’t follow Indian labour laws, which allow workers the right to association and collective bargaining,” she told the BBC.
Bhatia elaborated that these companies sometimes form internal unions that appear to represent workers but are effectively controlled by the management, preventing genuine collective bargaining. She emphasized that such companies often resist the formation of external unions, especially those with political affiliations. According to Bhatia, multinational corporations are uncomfortable with independent unions and prefer internal structures that limit workers’ autonomy.
A source from Samsung echoed this view, telling the BBC earlier in the strike that the company “fully supports unions but not ones backed by a third-party.” This reflects a common stance taken by multinational corporations operating in India, where external unions with political backing are viewed with suspicion.
The recent Samsung strike is not an isolated incident. Earlier this year, hundreds of workers at a factory in Tamil Nadu, operated by an Apple supplier, also went on strike. Like the Samsung workers, they too were demanding recognition of their union. The trend of labor strikes in India’s technology and electronics manufacturing sector underscores the growing tension between workers and multinational companies, especially when it comes to labor rights and union recognition.
While the Samsung strike has come to an end, the outcome of the court’s decision on whether to recognize the Samsung India Labour Welfare Union will likely have a lasting impact on labor relations at the factory. Workers have indicated that they are prepared to continue fighting for their union, even as they return to work under the current terms.
Samsung’s decision to engage with workers on their demands and refrain from penalizing them for striking could be seen as a positive step toward improving labor relations in the long run. However, the unresolved issue of union recognition suggests that labor disputes may continue unless a more concrete resolution is reached. For now, though, the focus shifts to how Samsung and its workers navigate the ongoing negotiations regarding wages, working conditions, and future labor relations.