NEW DELHI: Samsung on Monday said production at its Sriperumbudur plant in Tamil Nadu has returned to normal capacity despite the ongoing employee strike. Employees at the plant, which manufactures consumer goods like televisions, refrigerators, and washing machines, have been protesting for better pay and reduced working hours for the past 15 days.
Initially, production was hit by nearly 50%, but the company has since hired contractual employees, and production is now nearly back to normal. “The strike at Chennai factory, now in its 15th day, hit the production of consumer goods such as televisions, refrigerators, and washing machines initially. However, the impact of the strike is minimal now, and the company expects production to be near normal starting this week,” said Samsung.
The plant is a crucial production unit, accounting for one-third of its annual revenue in India, about USD 12 billion. The strike, began on September 9, was driven by workers’ demands for higher wages, a raise from Rs 25,000 to Rs 36,000 over the next three years, and official recognition of their union, backed by the Centre of Indian Trade Union (CITU).
Samsung has taken legal action, approaching a district court to obtain a temporary injunction against the union to prevent protests near the factory. The court asked the company for a swift resolution to the dispute instead of issuing a direct order. In an email to employees, it deemed the strike illegal and implemented a “no work, no pay” policy from September 9, 2024, until the workers resume their duties.
Contractual staff hired
Initially, production at the plant was hit by nearly 50%, but the company has since hired contractual employees, and production is now nearly back to normal.
