Why hundreds of Samsung employees are protesting in India

Over the past eleven days, around 1,500 workers at South Korean technology giant Samsung Electronics have been on strike in the southern Indian state of Tamil Nadu, leading to significant production disruptions.

The Chennai plant, one of Samsung’s two factories in India, employs nearly 2,000 people and produces home appliances that contribute about a third of the company’s $12 billion (£9 billion) annual sales in India.

The striking workers gather daily at a compound near the 17-year-old factory, demanding that Samsung recognize their newly formed union – the Samsung India Labour Welfare Union (SILWU). They say only a union can help them negotiate better wages and working hours with management.

The protest, one of the largest Samsung has seen in recent years, comes at a time when Prime Minister Narendra Modi is trying to attract foreign investment by portraying India as a viable alternative to China for manufacturing activities.

Samsung India has released a statement saying that the welfare of its employees is the company’s top priority. “We have initiated discussions with our workers at the Chennai plant to resolve any issues as soon as possible,” it said.

Hours earlier, police had arrested around 104 workers for taking part in a protest march without permission. The demonstrators were released in the evening.

“The workers have decided to go on strike indefinitely until their demands are met,” said A Soundararajan, a member of the Centre of Indian Trade Unions (Citu), which is backed by the Communist Party of India (Marxist). Citu has supported the new union at the factory.

The workers have three key demands: Samsung must recognize the new union, allow collective bargaining and reject competing unions, as around 90 percent of the workforce belongs to the SILWU, Soundararajan said.

According to Citu, the workers earn an average of 25,000 rupees (US$298 or £226) a month and are demanding staggered salary increases totalling 50 percent over the next three years.

Citu also claimed that workers at the factory were “pressured to complete each product – such as a refrigerator, washing machine or television – within 10 to 15 seconds”, working for four to five hours at a time without a break and doing their work in unsafe conditions.

“We categorically deny that workers are required to work for four hours at a time. All workers are given adequate breaks in between,” said an official statement from Samsung India.

“In addition, employees work on their respective tasks in the manufacturing process while the products are moving through the assembly line. They are not required to ‘finish’ a product in such a time frame, which is unrealistic. We reiterate that we comply with all laws and regulations,” the statement continued.

Mr. Soundararajan also alleged that the workers were pressured by the management to leave the new union and that their families were also threatened.

Samsung India said the company “categorically denies all allegations and strictly adheres to all existing labour laws.”

Meanwhile, Tamil Nadu Social Welfare Minister CV Ganesan said he had assured union representatives that talks were underway to resolve their problems. “We will meet the workers’ demands,” he said.

Sijo*, a protester, said he arrives at the protest site at 08:00 IST (02:30 GMT) every day and stays until 17:00, where he joins hundreds of workers in their blue Samsung India uniforms.

The union provides lunch and water for the protesters, while a makeshift fabric tent protects them from the elements. There are no washrooms, so workers must work outside.

“Since the factory was founded, the employees have worked without complaints or unionization. But in recent years the situation has worsened and now we need the support of a union,” Sijo said.

He added that his salary does not keep up with the cost of living and this is putting a financial burden on his family.

Until 2020 The Samsung Group was known for not allowing unions representing its workers. But things changed when the company came into the public eye after its CEO was charged with market manipulation and bribery.

Millions of Indian workers are joining unions – often backed by left-wing parties – which are using their political influence to enforce labour laws and negotiate better conditions. “Foreign companies are setting up shop in India but refusing to respect local laws on the right to organise and collective bargaining,” claims Soundararajan.

Many well-known multinational companies, including Apple and Amazon, have set up factories in India, but labour rights activists claim that many of them underpay and overwork their Indian employees and collude with state governments to suppress workers’ rights.

Labor economist Shyam Sundar said multinational corporations in developing countries like India use various “human resources strategies” to prevent workers from forming unions.

For one thing, they are firmly opposed to workers joining external, politically supported unions and encourage them to form “worker-led” internal unions. “This will ensure that management has some control over the union’s activities,” Sundar said.

Mr. Soundararajan claimed that the management of the Chennai plant had also offered this solution to the workers, but they had rejected it. A source at Samsung India told the BBC that the organisation “fully supports unions, but not those supported by third parties”.

The company later stated in an official statement that it was “ready to communicate with the works council, which is made up of the majority of employees, on issues such as wages, social benefits and working conditions.”

According to Sundar, companies also hire young, unskilled workers, especially from rural areas, by luring them with a good starting salary. “These ‘trainees’ are promised that they will be hired permanently after a few months, but that does not happen. Salaries also stagnate or increase very little.”

The rapid increase in the number of “flexible workers” – workers hired on a contract basis – has become a key strategy for multinational corporations to prevent unionization and ensure a compliant workforce, he added.

According to the latest government statistics every two fifth worker is employed in a factory In India, in 2022, contract workers constituted about 40% of the workforce in industrial enterprises.

“Companies are threatening to relocate or halt expansion to prevent state governments from enforcing labour laws,” Sundar said. “But workers can use global unions to put pressure on companies to comply with international labour laws,” he added.

*Name changed to protect employee’s identity

This story has been updated with official statements from Samsung India

With contributions from Vijayanand Arumugam of BBC Tamil and Nikhil Inamdar of BBC News