Anamika Dey, editor
Brief news
- Samsung Electronics’ shares fell 3% due to a strike at its Chennai plant, marking five days of production disruptions.
- Workers demand union recognition, higher wages, and better working conditions, with 85% of the 1,700 employees participating.
- The strike reflects broader labor unrest, following significant wage demonstrations in South Korea earlier this year.
Detailed news
Samsung Electronics’ shares experienced a 3% decline on Friday due to the ongoing strike at its southern Indian plant, which has resulted in a fifth consecutive day of production setbacks at the consumer electronics unit.
On Thursday, Samsung’s management, the state’s labor officials, and the representatives of the worker union were unable to reach an agreement regarding pay and working conditions, among other matters.
Since Monday, hundreds of employees have been on strike, urging the electronics conglomerate to acknowledge their union, increase wages, and shorten working hours. According to Reuters, this is one of the most significant demonstrations in India in recent years.
The facility, situated in Chennai, southern India, manufactures electronic appliances, such as laundry machines, refrigerators, and televisions.
It is one of the two factories that Samsung operates in India, and it has the potential to generate up to 30% of the group’s $12 billion annual revenue in the country, according to Reuters.
Samsung Electronics is a prominent participant in the Indian market for electronic appliances and smartphones. Statista estimates that the revenue of the main appliances sector in India for 2024 will be $38.2 billion.
Union leader E. Muthukumar informed Reuters that the workers will persist in their strike until their demands for improved wages and working conditions are satisfied. “Samsung management requested that we cease our strike; however, they refused to acknowledge the union or engage in dialogue with us, resulting in the strike’s continuation.”
Business Standards, a local newspaper, reported on Tuesday that approximately 85% of the 1,700 employees at the plant were involved in the strike.
In a statement issued earlier this week, a Samsung spokesperson stated that the company “actively engages with our workers to address any grievances they may have and comply with all laws and regulations.” Additionally, we will guarantee that our consumers are not inconvenienced.
Following the recent wage demonstrations in South Korea, where 36,500 members of the largest workers’ union went on strike in July and August, the strike in Samsung India is a response to the demand for improved benefits and higher wages.
Samsung Electronics’ shares, which are listed on South Korea’s stock exchange, have declined by more than 6% this week, according to data from LSEG.
Source : CNBC News
