Samsung Electronics has warned striking workers in southern India that they will not receive wages if they continue their protest and could also face dismissal, according to a company email, intensifying the ongoing dispute.
Hundreds of workers have been protesting near Samsung’s home appliances factory outside Chennai since September 9, demanding higher wages and official recognition of a union at the plant, which contributes roughly a third of Samsung’s annual India revenue of $12 billion.
The strike, one of the largest in India in recent years, has raised concerns about Prime Minister Narendra Modi’s “Make in India” initiative, which aims to attract foreign investment and triple electronics production to $500 billion within six years.
Samsung’s Indian unit filed a lawsuit on September 12 seeking a temporary injunction from a Kancheepuram district court to prevent the union and its members from protesting around the factory. However, during a hearing on September 19, the judge only called for a quick resolution of the matter.
In an email sent on Friday, Samsung India’s HR team informed striking workers that they were participating in an “illegal strike” and would not be paid for the period of protest. “You shall not be entitled to wages from 09.09.2024 until you return to work on a ‘No work, No pay’ basis,” the email stated.
The company also warned that employees must return to work within four days or risk having to justify why they should not be dismissed from service.
Samsung India said in a statement that it has informed workers of its policy in line with “relevant laws and regulations” and urged them to return to work immediately. “The safety and wellbeing of our workers are a priority. We remain committed to resolving this issue,” the statement added.
The message also emphasised that Samsung management believes all issues can be resolved through discussions.
The factory, which employs around 1,800 workers, manufactures appliances like refrigerators, TVs, and washing machines. More than 1,000 workers are currently on strike, while a separate Samsung plant producing smartphones in Uttar Pradesh has seen no unrest.
According to the labour group CITU, which has been supporting the workers, Samsung employees earn an average of 25,000 rupees ($300) per month and are demanding a wage increase to 36,000 rupees ($430) over three years. Samsung has been reluctant to recognise a union backed by a national labor group like CITU, and negotiations with workers and state officials have yet to reach a resolution.