On September 11, 2024, workers protested at a Samsung India factory in Sriperumbudur near Chennai, demanding higher wages and recognition of their union.
R. Satish Babu | AFP | Getty Images
Stock Samsung Electronics The stock fell as much as 3% on Friday as workers at a factory in southern India continued their strike, halting production in the home appliances division for a fifth day.
Union representatives, Samsung management and government labor officials failed to reach an agreement on Thursday over issues including wages and working conditions.
Hundreds of workers have been on strike since Monday, demanding union recognition, higher wages and shorter working hours from the electronics conglomerate, in one of India’s largest strikes in recent years. Reuters reported..
The factory, located in the southern Indian city of Chennai, makes electrical appliances such as televisions, refrigerators and washing machines.
The factory is one of two Samsung operates in India and could account for up to 30 percent of the group’s $12 billion in annual sales in the country, according to Reuters.
Samsung Electronics is one of the leading players in the Indian smartphone and electronics market. The overall major consumer electronics segment in India is expected to generate revenue of $1.2 billion by 2024. $38.2 billionAccording to Statista.
The workers will continue the strike until their demands for better wages and working conditions are met, union leader E. Muthukumar told Reuters. “We have asked Samsung management to end the strike but they have not recognised the union or tried to talk to us, so the strike continues.”
According to local newspapers, about 85 percent of the factory’s 1,700 workers were on strike. Business criteria reported on tuesday.
In a statement earlier this week, a Samsung spokesman said the company was “proactively involved in addressing any complaints from employees and ensuring compliance with all laws and regulations. We also work to avoid confusion for consumers.”
The strike at Samsung India follows recent wage protests in South Korea, where 36,500 members of the country’s largest labor union went on strike in July and August demanding higher wages and improved benefits.
Samsung Electronics’ shares listed on the Korea Stock Exchange have fallen more than 6% so far this week, according to LSEG data.
