September 12, 2024 – A strike by workers at Samsung’s factory in Chennai, India, has entered its third day, with hundreds of employees demanding higher wages and better working conditions. The strike, which began this week, has no set end date, according to the chairman of the Samsung India Employees’ Union, Muthukumar.
The Chennai plant, one of two major Samsung facilities in India, plays a crucial role in the company’s home appliance supply chain. It produces refrigerators, washing machines, and other home appliances for both the Indian market and export. The strike has significantly impacted the factory’s output, which contributes 20% to 30% of Samsung’s annual revenue in India, according to two informed sources.
Negotiations between Samsung India and the striking workers failed on the 10th, as the company rejected the employees’ demands. Muthukumar stated that the strike will continue indefinitely until their demands are met.
This latest labor dispute adds to Samsung’s recent troubles in India. In 2014, the company was fined 200millionbyIndianauthoritiesfortaxevasion.In2023,Samsung′sIndianfactoryfacedanotherheftyfine,exceeding100 million, for violating environmental regulations and safety requirements. These incidents have raised concerns among some businesses about the investment climate for manufacturing in India.
