On September 9, 2024, hundreds of Samsung Electronics employees at the Sriperumbudur plant near Chennai went on strike, demanding higher wages and improved working conditions. The workers, organized under a union, have been seeking wage increases and better working hours, as well as recognition for their labor union. Despite mediation talks, no resolution has been reached, prompting the workers to continue their protest for a third day.
Union leader E. Muthukumar stated that the workers have taken a firm stand, and tents have been set up outside the plant to mark the strike’s indefinite nature. The strike has significantly disrupted operations at the plant, which produces consumer electronics like refrigerators, washing machines, and televisions.
Impact on Production and Revenue
The ongoing strike has caused a notable disruption in production at the Sriperumbudur plant, affecting approximately 50% of the factory’s daily output. The factory plays a crucial role in Samsung’s operations, accounting for 20-30% of its annual $12 billion revenue in India. The plant employs around 1,800 workers, and the strike poses a risk to the company’s production schedule, especially as India remains a key growth market for Samsung.
Sources have reported that Samsung’s India CEO is visiting the plant to address the labor unrest and seek a resolution. The company has stated that it complies with all labor laws and is actively engaging with workers to address their grievances.
A Pattern of Labor Protests
This strike comes after Samsung’s South Korean workers staged similar protests earlier in 2024, demanding better wages and conditions. The unresolved labor dispute at the global level reflects growing tension within the company’s workforce, which has now spread to India. With Samsung’s Indian operations contributing significantly to its global revenue, a swift resolution is critical to avoiding long-term disruptions.
The Sriperumbudur factory, opened in 2007, is one of Samsung’s key manufacturing hubs in India, and ongoing protests threaten to stall production and revenue growth.