The strike by over 1,000 workers at Samsung India’s plant in Sriperumbudur has entered its third week. The company, a major South Korean electronics manufacturer, has expressed its willingness to engage in direct negotiations with the workers to reach an amicable resolution. A legal representative of Samsung India, representing the company in both the Madras High Court and the Kanchipuram District Court, emphasised that the workers at the Tamil Nadu factory receive all statutory benefits and are paid wages that exceed the government-prescribed rates for the electronics industry.
The lawyer asserted the strike's illegality, citing the ongoing conciliation process for the workers' demands and the absence of registration for the workers' union. Despite this, Samsung India's management has exhibited patience and is open to direct negotiations with the workers, in the presence of labour department officials, to resolve the dispute amicably.
The workers initiated the strike on September 9 to press for various demands, including a wage increase, union recognition, and an 8-hour workday. This labour action has impacted the production of consumer goods such as televisions, refrigerators, and washing machines.
The legal representative further communicated the management's willingness to enter into a long-term wage settlement with the workers. However, it was emphasised that negotiations will only take place directly with the workers and not through a third party. The company's management has urged the workers to cease the illegal strike, return to work, and engage in negotiations to resolve the differences in a harmonious manner at the earliest opportunity.
Meanwhile, Samsung Electronics is planning to reduce its overseas staff by up to 30 percent in certain divisions. Three sources with direct knowledge of the matter informed Reuters about this decision. The company has instructed its subsidiaries worldwide to cut sales and marketing staff by about 15 percent and administrative staff by up to 30 percent.
The plan is expected to be executed by the end of the year and will impact positions across the Americas, Europe, Asia, and Africa. However, it is not clear how many employees will be affected and which countries and business units will be most impacted.
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