The ongoing protest by Samsung India workers at the Kanchipuram factory has entered its 17th day. The workers are demanding a wage hike, eight-hour workdays, and recognition of their trade union, despite facing warnings about potential repercussions such as the disabling of their identity cards and withholding of their Diwali bonus. The protest, taking place at a factory near Sunguvarchatram in Tamil Nadu's Kanchipuram district, involves more than 5,000 employees, with 1,500 being permanent staff.
This particular plant in Chennai is one of Samsung's two factories in India and contributes about a third of the company's annual USD 12 billion revenue in the country.
Why are Samsung workers protesting?
The workers, who have formed the Samsung India Labour Welfare Union (SILWU), are seeking recognition from Samsung, believing that a union is crucial for negotiating improved wages and working conditions. This protest is one of the largest Samsung has faced in recent years.
What is Samsung’s response?
In response to the workers' demands, Samsung commented for the first time on wages, stating that the average monthly salary of full-time manufacturing workers at the Chennai plant is 1.8 times higher than that of similar workers at other companies in the region. Samsung also emphasised that its workers are eligible for overtime pay and other allowances and that the company ensures the highest standards of health, safety, and welfare in the workplace. Samsung expressed readiness to engage with the workers to address their grievances and facilitate their return to work as soon as possible.
Meanwhile, Samsung has directed its global subsidiaries to trim sales and marketing personnel by approximately 15 percent and administrative staff by as much as 30 percent, with the implementation of the plan anticipated by year-end.
The reduction in workforce will have an impact on roles across the Americas, Europe, Asia, and Africa. However, specific details regarding the number of affected employees and the countries and business divisions most affected remain unclear.
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