What is the Samsung workers strike in Chennai about? | Explained

What is the South Korean electronics giant’s union policy? What are the workers demanding?

The story so far: About two-thirds of the 1,800 employees at one of South Korean electronics giant Samsung’s flagship factories in Chennai, have been striking work for a month now, demanding higher wages, an eight-hour work day, better working conditions and for the recognition of their recently formed labour union — the Samsung India Workers Union, or SIWU.

What were recent developments?

Tamil Nadu’s Industries Minister T.R.B. Raja, speaking to the press on October 8, urged striking workmen to return to work, “in the interest of jobs for the youth and employment opportunities for the State.” He said Samsung and a “workmen’s committee” had reached an “agreement” on a slew of measures, including a monthly ₹5000 “productivity stabilisation incentive” to be paid to workers between October 2024 and March 2025. But striking workers rejected this agreement, accusing the “workmen’s committee” of being company backers, and those who did not represent the interests of the majority of employees. While official sources said about 10 union members were arrested past midnight on October 8, leaders of the Centre of Indian Trade Union (CITU), the national labour union supporting Samsung India workers said “hundreds” have been arrested.

What is Samsung’s union policy?

Samsung is South Korea’s largest family-run business whose consolidated revenue in FY2023 was approximately $198 billion, which is more than one-tenth of that country’s $1.71 trillion GDP for that year. The company runs businesses ranging from smartphones to an array of high-end components for the nation’s 5G infrastructure, considered to be one of the best in the world. The firm has deep roots in the government, and often influences economic policies in South Korea. The founding family members have been embroiled in financial crimes, but have received pardons from South Korea’s Presidents, as the firm’s leadership role in the nation’s economy is prioritised. In 2009, Samsung’s late chairman Lee Kun-hee was convicted of tax evasion and embezzlement, but received a pardon from the President to allow Mr. Lee to ‘lead the campaign by the South Korean city of Pyeong Chang to host the 2018 Winter Olympics.’

The company has maintained a ‘no union’ policy since its inception more than 80 years ago, until July 2021, when Samsung Display workers successfully agreed to a 4.5% wage revision. The next month Samsung Electronics workers won a major collective bargaining agreement that included recognising full-time union members and full pay for working extra hours on union duty. This happened after protracted legal challenges to the company’s no-union policy.

Now, several unions represent Samsung workers globally and its workforce worldwide is well over a quarter of a million. Of this 1,25,000 work in South Korea alone. Among the largest unions at Samsung’s South Korea facilities is the National Samsung Electronics Union (NSEU) with a membership of over 30,000 workers, or about a fourth of the home country’s workforce. The NSEU members struck work for three days between July 8-10, with similar demands as those of their Chennai colleagues. The NSEU has extended support to the SIWU in Chennai.

Why is SIWU not being recognised?

The 1926 Trade Unions Act governs the registration of workers’ unions, laying down the procedure to be followed. Under the Act, the Registrar of Trade Unions or the Labour Commissioner of the State, in this case Tamil Nadu, must consider an application for registration, while also examining objections, if any. In the Court hearing held on October 1, the State’s lawyer representing the Labour Commissioner said Samsung’s management had objected to SIWU’s registration on the ground that the name “Samsung” in SIWU’s full form is a trade mark violation. SIWU’s lawyer Sivakumar Sankaralingam speaking to the The Hindu said, there are judgments and long-established precedence in India, where courts have held that a trademark violation is applicable only when a union indulges in any commercial activity, which in this case would not be possible. The case is to come up for hearing again early next week. A high ranking government official, speaking off the record, said, “we have granted registration to several unions in the past, but we will consider (Samsung) management’s objections and accordingly file our affidavit in Court.”

A registration grants a union legal standing and affords it certain protections under the TU Act. It grants the union immunity from civil and criminal actions during strikes Registration also grants the union the right to enter collective bargaining discussions and represent members during labour disputes.

What has been the govt.’s response?

SIWU and CITU have questioned the T.N. government’s ‘indifferent’ response and have accused them of siding with Samsung’s management, while the government has denied such accusations.

“The government seems to be in support of the management, there’s no doubt at all,” said R. Karumalaiyan, National Secretary, CITU. “Unionisation is an investment globally. There are even IMF studies that have shown this... In the Sriperumbudur (where Samsung’s factory in Chennai is located) and Oragadam regions of Chennai, we have helped workers in more than 100 factories to unionise in the past decade. There is no empirical data to prove that we are deterring investments, or impeding production. In fact, we have proven that unionising has been beneficial for the companies and for workers. I hope better sense prevails with the DMK government”, he told The Hindu.

Published - October 10, 2024 08:30 am IST