Samsung India Strike Shines Light on Influential Labour Group
A labour strike at a Samsung plant in India has disrupted production and highlighted worker concerns. The Centre of Indian Trade Unions (CITU) is playing a significant role in the strike, signalling its growing interest in the electronics sector. Workers are demanding substantial wage increases, citing low pay and rising living costs.
The ongoing protest, now in its fifth day, has disrupted production and raised questions about Prime Minister Narendra Modi's ambitious 'Make in India' initiative.
The Centre of Indian Trade Unions (CITU), a politically-backed organisation with 6.6 million members, has emerged as a key player in the Samsung dispute. Known for its focus on the auto industry, CITU is now setting its sights on the rapidly growing electronics manufacturing sector, where it claims companies are not adequately addressing wage revisions.
S Kannan, CITU's Tamil Nadu deputy general secretary, expressed concern over the lack of collective bargaining opportunities in the electronics industry. 'There is no opportunity for collective bargaining either', he stated, indicating the group's intention to expand its influence in this sector.
The strike at Samsung's home appliances plant in Tamil Nadu has seen hundreds of workers donning blue company shirts and red CITU caps, staging a sit-in near the facility. This industrial action is particularly significant as it impacts production at a plant that contributes approximately one-third of Samsung's annual US$12 billion revenue in India.
Workers at the Samsung plant are demanding substantial wage increases, citing rising living costs. According to CITU, the average monthly salary at the plant is 25,000 rupees (US$300), and workers are seeking a raise of 36,000 rupees (US$430) over three years. One long-time employee reported earning only 23,000 rupees per month after a decade of service, highlighting the financial struggles faced by workers.
The strike comes at a crucial time for India's electronics manufacturing ambitions. Prime Minister Modi's government has been actively courting foreign investors, aiming to triple electronics production to US$500 billion in six years. Companies like Foxconn and Micron have been attracted by business-friendly policies and affordable labour, particularly as global manufacturers look to diversify their supply chains beyond China.
However, the Samsung protest underscores the potential challenges in balancing rapid industrial growth with worker welfare. K.R. Shyam Sundar, an economist specialising in labour reforms, suggested that 'Instances of strikes could be reduced if government ensures a mechanism for multinationals to respect the labour laws including freedom of association and collective bargaining'.
CITU's involvement in the Samsung strike may signal a shift in labour dynamics within India's electronics sector. The group has indicated plans to push for improved worker rights at other major electronics manufacturers, including Apple supplier Flex and electronics firm Sanmina.
Samsung has stated that it has initiated discussions with workers 'to resolve all issues at the earliest'.
A labour strike at a Samsung plant in India has disrupted production and highlighted worker concerns.
The Centre of Indian Trade Unions (CITU) is playing a significant role in the strike, signalling its growing interest in the electronics sector.
Workers are demanding substantial wage increases, citing low pay and rising living costs.
Source: REUTERS