Workers strike at Samsung India plant enters day 2, production to be hit

By Praveen Paramasivam

SRIPERUMBUDUR, India (Reuters) -Hundreds of Samsung Electronics employees went on a strike at a plant in southern India for a second day on Tuesday to demand higher wages, disrupting operations at the South Korean giant.

They put up tents outside the factory in Sriperumbudur near the city of Chennai as they prepared to boycott work.

The Indian plant is one of the two Samsung factories in the country which the company counts as a key growth market. Two sources with direct knowledge said the factory accounts for 20%-30% of Samsung's annual $12 billion revenue in India.

Samsung employs around 1,800 workers at the plant which makes consumer electronic items such as refrigerators, washing machines and televisions.

Around half of the daily production was affected at the factory when many workers did not turn up for work on Monday, and the protest is continuing as workers demand higher wages, better working hours and want their union to be recognised by the company.

"We are striking for the second day," said union leader E. Muthukumar.

Samsung India did not respond to a request for comment. A spokesperson said on Monday the company actively engages with "workers to address any grievances they may have and comply with all laws and regulations".

The protests in India come after Samsung Electronics union in South Korea held a strike for several days in July and August and has been preparing for a long term strategy as the union has not reached an agreement with the management.

Workers in Sriperumbudur put up posters outside the factory which read "Indefinite strike from 09.09.2024 ... Discuss and solve demands from the labour union with union officials."

The other bigger Samsung plant is in northern Uttar Pradesh state where smartphones are manufactured.

(Writing by Aditya Kalra; Editing by Jamie Freed and Muralikumar Anantharaman)