A labour strike in India has disrupted production at a Samsung plant, drawing attention to a politically backed workers’ group that quietly organized employees of the South Korean company.
The Centre of Indian Trade Unions (CITU), backed by the Communist Party of India (Marxist), now aims to expand its influence within the country’s growing electronics sector, reports Reuters.
The protests over low wages cast doubt on Indian Prime Minister Narendra Modi’s efforts to attract foreign investors under the “Make in India” initiative, which aims to triple electronics production to $500 billion within six years. Companies like Foxconn and Micron have been enticed by Modi’s pro-business policies and affordable labour, especially as global manufacturers seek to reduce their dependence on China.
Police arrested more than 100 striking Samsung workers on Monday (September 16) for planning a protest march without permission. However, most of them were released later in the day.
The workers who want higher wages stopped working at the Samsung home appliances plant near Chennai in the state of Tamil Nadu on September 9.
Factory with multibillion-dollar revenue
The Samsung strike marks one of the most significant instances of industrial unrest causing production halts at a multinational corporation in India. The Tamil Nadu plant alone contributes roughly a third of Samsung’s $12 billion annual revenue in the country.
The Samsung plant employs about 1,800 workers, and more than 1,000 of them have been on strike. The factory makes appliances like refrigerators, TVs and washing machines. Another Samsung plant that makes smartphones in the northern state of Uttar Pradesh has had no unrest.
Striking Samsung workers, dressed in blue company shirts, have been seen staging a sit-in near the Tamil Nadu plant, wearing red caps bearing the acronym of the Centre of Indian Trade Unions (CITU).
CITU, backed by the Communist Party of India (Marxist) and representing 6.6 million workers, advocates for labour-friendly measures but has traditionally focused on the automotive sector, including companies like Hyundai.
While Samsung employees can unionize independently, many see aligning with CITU — founded in 1970 — as a way to gain national support.
Reasons for strike
In July, CITU sent a letter to Samsung management, demanding wage increases, describing the workers’ plight as a “dire situation.” When Samsung did not comply, CITU helped workers organize the strike.
According to CITU, Samsung workers earn an average of 25,000 rupees ($300) a month and are demanding a raise to 36,000 rupees ($430) over the next three years because of the rising cost of living.
Strikes of this magnitude, particularly affecting production, are rare in India’s electronics industry. However, there has been labour unrest in the past, for example at iPhone suppliers Wistron and Foxconn, where disputes over unpaid wages and a food poisoning incident sparked protests in 2021.
CITU is now looking to advocate for greater workers’ rights at Apple supplier Flex and electronics firm Sanmina, where it is pushing for union recognition and wage improvements.
While workers protest, Tamil Nadu’s Chief Minister M.K. Stalin has been abroad on a U.S. tour, engaging with companies like Nike and Ford.
Samsung, in a statement on Friday (September 13), said it had initiated talks with workers at the Tamil Nadu plant to resolve the issues as quickly as possible.