Why Samsung workers’ labour strike near Chennai has entered its second month

The continuation of protests, despite the talks, was followed by a crackdown from the Tamil Nadu police. Early on Wednesday morning, 11 key union leaders were taken into preventive custody. There are now concerns that the strike could have ripple effects across other sectors.

What began as an industrial dispute has also morphed into a political crisis, threatening to tarnish Tamil Nadu’s image as an investor-friendly state and testing the strength of the ruling DMK-led alliance.

Why are Samsung workers protesting?

The core issue is the workers’ demand for the recognition of their newly formed Samsung India Workers’ Union (SIWU), under the banner of the Centre of Indian Trade Unions (CITU), which is a left-leaning labour organisation affiliated with the Communist Party of India (Marxist).

However, the South Korean electronics company resisted this demand. While Samsung said it is against the idea of a union engaging in collective bargaining along with leaders from outside, the state labour department also did not process a request by the labourers to register their union. As per the law, the government should have processed the request within 45 days.

The workers then moved the Madras High Court over the delay and the government has said it will wait for the court’s decision.

The Sriperumbudur plant, operational since 2007, has never encountered such a protest in the past. The company’s current position also seems partly informed by recent events in Samsung’s global operations.

In July, the company faced a major strike at its plant in Seoul, South Korea, with over 6,500 workers demanding better wages and working conditions. Rumours of North Korean communist involvement in the strike were believed to have heightened Samsung’s wariness against unionisation efforts.

N Muthukumar, the Kancheepuram district secretary of CITU and the leader of the proposed union, the SIWU, leads two dozen similar unions of CITU in industries in the Sriperumbudur belt.

Muthukumar claimed that the Samsung workers approached them after they faced issues with the management for raising demands. “Those employees who raised demands earlier were reassigned from TV units to AC units even though they had no expertise there. They complained they were made to wait for hours in rooms alone to ask questions. They were denied leave, forced into relentless overtime, and isolated from their peers. For the labour force, this strike was not just about the union, it was about their basic rights as workers,” he said.

How did the Tamil Nadu government react?

Even though 1,350 of the 1,723 permanent workers at the plant initially joined the strike, the government did not react immediately. Several senior officials, including Chief Secretary N Muruganandam, adopted a wait-and-watch approach, hoping Samsung India would resolve the issue internally. The government’s decision, however, led to the workers feeling ignored.

After the meeting on Monday, the government claimed a settlement had been reached. “Samsung India today signed a Memorandum of Agreement with the workmen committee of its Chennai factory… We are cognizant of the Tamil Nadu government’s efforts to end the illegal strike and are thankful to the authorities for their constant support,” the company spokesperson said.

However, CITU president A Soundararajan alleged that the workers who signed the memorandum were a few who were not part of the strike. Protesting workers refused to accept the agreement.

A DMK leader told The Indian Express on Wednesday that the talks “weren’t a failure but a crucial step”. “But it appeared that the government tried to make a misleading claim that everything has been solved. Those who rushed to declare the issue resolved were overambitious and lacked experience in trade union negotiations,” he said.

What now for the government?

Both CITU and the CPI(M) have long supported the MK Stalin-led government, but the strike has opened a rift in the relationship.

After the talks, Tamil Nadu police on Wednesday took 11 union leaders into preventive custody, just before a visit by leaders from DMK’s alliance partners — Congress, CPI(M), CPI, MDMK, and VCK — to the protest site and their declarations of solidarity with the workers. Further aggravating tensions, senior leaders of CITU, including Soundararajan and Muthukumar, were also taken into custody for protesting against the police action.

The CITU has now called for a one-day token strike on October 21 across the northern industrial region.

The strike also comes at a bad time for the state government. CM Stalin was in the United States just last month, pitching Tamil Nadu as a destination for global investors and signing a series of investment deals, when news of the industrial unrest broke.

What is at stake for Samsung, and the significance of the Sriperumbudur plant?

For Samsung, the Sriperumbudur plant is crucial, contributing roughly one-third of its annual revenue in India. The factory produces appliances such as refrigerators, washing machines, and televisions. The strike is one of the largest labour disruptions the company has faced in India.

Contract workers, who make up a significant portion of the plant’s total workforce of around 5,000, are not part of the strike, but production has slowed significantly. At least 50% of the production has been affected already, according to independent sources familiar with Samsung India.

Samsung has consistently argued that the strike is not about wages or working conditions, which they claim have already been addressed, but about the CITU’s alleged attempt to gain control over the labour force. After the talks held on Monday, a spokesperson stated that they will “engage with workmen directly to address the difficulties faced by them.”

When asked about the deadlock over his presence in the proposed union, Muthukumar told The Indian Express that workers have the right to choose their union and leaders. “Management has no authority to dictate who represents the labour force. What if workers refused to speak to a particular Managing Director or HR? This is about workers’ rights,” he said.

About the concerns over the state’s investment-friendly image, Muthukumar said there have been similar strikes in the past too, but they did not lead to companies shutting shop in the state.