Overview of the Strike

• Started: September 9, 2024
• Participants: Over 1,000 workers from Samsung’s home appliances factory near Chennai, Tamil Nadu.
• Demands: Higher wages, union recognition, better working conditions.

Key Demands by Workers

• Wage Increase: Workers, currently earning an average of Rs. 25,000 ($300) per month, are pushing for Rs. 36,000 ($430) over the next three years.
• Union Recognition: SIWU, though formed last year, has not been recognized by Samsung.
• Additional Demands: Equal pay for equal work, better allowances, improved parental leave, and overall better working conditions.

Samsung’s Position

Samsung has defended its stance by stating that its workers earn 1.8 times more than the regional average and receive overtime pay along with other benefits. The company has expressed a willingness to engage in discussions but has warned of potential wage cuts if the protests continue.

Impact on Production

The strike has severely disrupted production at the Sriperumbudur facility:

• Refrigerators: Daily output has dropped from 10,000 to 700 units.

• Compressors: Production has decreased from 13,800 to 8,000 units per day. With only 20% of the workforce operational, the factory’s production is at a near-standstill, coinciding with the critical festive season.

Economic and Political Implications

• Make in India: The strike challenges Prime Minister Modi’s initiative to triple electronics production to $500 billion in six years, as it casts doubts on India’s industrial stability.

• Labour Movement: This strike is the largest in India’s electronics sector in recent times and could trigger broader worker activism across industries, especially in Sriperumbudur, a hub for companies like Hyundai, Foxconn, and Dell.

Union Formation and Broader Context

The SIWU is supported by the Centre of Indian Trade Unions (CITU), part of a larger wave of labour unrest in the region. Similar protests have occurred in other industries, signalingwidespread dissatisfaction among workers in the area.

Strike-breaking Efforts and Worker Resolve

Samsung has tried to dissuade workers from striking by offering snack kits, personal calls, and bonuses, but workers remain determined. Negotiations with the Tamil Nadu Labour Secretary are ongoing, but no resolution has been reached yet.

Solidarity from Other Workers

Workers from other major companies, such as JK Tyres, Apollo Tyres, and Hyundai, have shown solidarity with the Samsung strikers, amplifying the significance of the protest.

Legal Framework Governing Union Formation and Recognition

1. Right to Form Unions (Trade Unions, 1926):
   • Workers have the right to form unions to collectively bargain for better wages and working conditions.
   • Samsung workers exercised this right by forming the Samsung India Workers Union (SIWU) in 2023.
   • However, there is no legal mandate requiring companies to officially recognise unions, which creates a grey area in labour laws.
   • This lack of recognition delays negotiations and puts workers at a disadvantage, often leading to protracted strikes and disputes.
2. Union Recognition:
   • Indian law does not require companies to recognise or negotiate with unions unless mandated by a tripartite agreement or court intervention.
   • Union recognition typically follows collective bargaining or labour disputes.
   • In the case of Samsung, workers’ demand for union recognition remains unfulfilled as the company has not yet acknowledged SIWU.
   • The absence of a legal requirement for recognition leads to prolonged strikes and increases tensions between workers and management

Industrial Disputes and Legal Procedures

1. Industrial Disputes Act, 1947:
   • This law provides a framework for resolving industrial disputes, including strikes and lockouts.
   •  Prior notice of the strike is required, and a conciliation officer is typically involved to mediate between the employer and workers.
   • SIWU followed legal procedures by issuing a strike notice to Samsung on August 19, 2024, in compliance with the law.
2. Tripartite Discussions:
   • Tripartite discussions (involving the government, workers, and the company) have been inconclusive, causing delays in dispute resolution.
   • These delays prolong strikes and escalate tensions, making it difficult to reach an agreement

Right to Strike and Company Response

1. Right to Strike:
   • Under the Industrial Disputes Act, 1947, Indian workers have the right to strike as long as it is done peacefully and after serving due notice.
   • The current Samsung strike is legal, as workers complied with the required notice period.
2. Samsung’s Actions:
   • Samsung has taken measures to dissuade further protests, including preventive arrests and warnings of wage suspension for striking workers.
   • These actions can be interpreted as strike-breaking tactics, although they may not directly violate labour laws, provided no undue force or coercion is applied.
   • Such tactics, while not illegal, may create a hostile environment that complicates dispute resolution and negotiations