As the strike at Samsung Electronics' Indian plant continues, the company has reportedly filed a lawsuit against union members, further escalating tensions between multinational corporations and local workers in India, a country that is increasingly attracting foreign investment.
Reuters reported that Samsung Electronics had escalated tensions with workers at its only Indian home appliances plant in Tamil Nadu by suing top officials of the Centre of Indian Trade Unions (CITU), who led a strike for 11 days. The lawsuit, filed on September 12 with a 14-page court filing, seeks a temporary injunction to restrain the union from agitating and preventing willing employees from working.
Samsung argued that the union's actions could disrupt the factory's operations and endanger the safety of its employees.
According to multiple media outlets, including the Hindu and BBC, the strike, which began on September 9, was initiated by the Samsung India Workers Union (SIWU), backed by the Centre of Indian Trade Unions (CITU). The strike happened at Samsung's plant in Sunguvarchatram near Chennai, Tamil Nadu, which home appliances.
One of the reasons behind the strike is salary. Workers are classified into grades A through E and receive minimal raises of up to INR3,000 (US$35.87) monthly, leading to an average monthly salary of INR25,000 (US$300). Despite nearly a decade of experience, many still earn less than INR30,000 per month. They are advocating for a salary increase to INR36,000 over the next three years.
Additionally, the striking workers have three main demands. Firstly, they seek official recognition of their newly established labor union. Secondly, they want the right to engage in collective bargaining with management through their union, rather than negotiating individually. Finally, they urge Samsung to dismiss any competing unions that may attempt to organize the workforce, asserting that over 90% of employees support SIWU.
The strike coincides with the Indian government's efforts to attract foreign investments as global supply chains shift. However, this influx of capital has also brought to light various labor rights issues.
According to the BBC, millions of Indian workers are part of trade unions, often aligned with leftist parties, which use their political power to enforce labor laws and improve working conditions. Critics, including labor rights activists, argue that many foreign companies in India violate local labor laws, underpay, and overwork employees.
BBC cited Labor economist Shyam Sundar, saying that multinational corporations employ various tactics to discourage union formation, such as opposing externally backed unions and promoting internal "worker-led" unions to retain control. A source from Samsung India confirmed to the outlet that the company supports unions but not those affiliated with third parties.
Additionally, companies are increasingly hiring young, unskilled workers on contract, promising permanent positions that rarely materialize, which helps them maintain a pliant workforce and evade the obligations of permanent employment. Recent government statistics reveal that nearly 40% of factory workers in India are now contractual laborers, indicating a growing reliance on this employment model.
