After five weeks, Samsung India workers have decided to end their strike and return to work, the Tamil Nadu government announced on Tuesday. The workers have pledged to cooperate with management and refrain from any actions that could be detrimental to the company’s interests, according to the state government.
The strike represented one of the largest labour disputes in India in recent years. Strikers disrupted production and staged protests in a makeshift tent near the factory in Chennai, demanding higher wages and union recognition. This plant is crucial to Samsung's operations, contributing approximately one-fifth of the company’s $12 billion in sales in India for the 2022-23 fiscal year.
Last week, Samsung proposed a monthly incentive of 5,000 rupees ($60) until March, along with additional air-conditioned buses, a more varied cafeteria menu, and a $24 gift card for employees upon the birth of a child, according to a settlement document reviewed by Reuters.
However, the labour group supporting the protests, the Centre of Indian Trade Unions (CITU), rejected the agreement, stating it did not recognise their union, according to A. Soundararajan, the state president.
Samsung workers currently earn an average of Rs 25,000 ($300) per month and are seeking a raise to 36,000 rupees over the next three years, as reported by the CITU. In response, Samsung noted that the average monthly salary for full-time manufacturing workers at the plant is nearly double that of comparable positions in the region.
The plant, which employs around 1,800 permanent workers and produces refrigerators, TVs, and washing machines, is one of Samsung's two factories in India. The other facility, located in Uttar Pradesh, manufactures smartphones and has not experienced any labour unrest.
Meanwhile, Samsung is reportedly laying off several employees worldwide as the tech sector grapples with challenges. Almost all of the big tech firms have announced significant layoffs worldwide.