Deepshikha Maan, Jadetimes Staff
D. Maan is a Jadetimes news reporter covering Asia
Labour rights strike by Samsung workers in India disrupts production
For the last 11 days, about 1,500 employees of Samsung Electronics, a prominent South Korean technology company, have been engaged in a strike at their facility located in Tamil Nadu, India. The walkout has resulted in substantial disturbances at the Chennai factory, which is one of Samsung's two major manufacturing plants in India. Employing over 2,000 workers, the facility is vital in manufacturing household appliances for the Indian market and accounts for about one-third of Samsung's $12 billion yearly revenue in the nation.
Workers request union recognition
Each day, the striking workers assemble at a designated area near the 17 year old factory, insisting that Samsung formally acknowledge their recently established labor organization, the Samsung India Labour Welfare organization (SILWU). The workers contend that the union is indispensable for engaging in negotiations for enhanced remuneration, better working conditions, and more equitable working hours with the management of the company. This protest, which is one of the most significant challenges Samsung has had in recent years, aligns with Prime Minister Narendra Modi's efforts to attract international investment and establish India as a viable manufacturing alternate to China.
An Analysis of Samsung's Reaction to the Strike
Samsung India reiterated that the well-being of its employees continues to be its utmost concern with respect to the protests. “We have commenced negotiations with our employees at the Chennai facility to promptly address all concerns,” stated a company spokesperson. Notwithstanding this, tensions intensified when law enforcement apprehended more than 100 workers who took part in an unauthorised protest march. Notwithstanding their subsequent release, the workers maintained their resolute demands, pledging to persist with the strike indefinitely unless Samsung complies with their demands.
Primary Worker Demands
The workers' demands center on three fundamental matters: formal acknowledgment of the newly formed union, the entitlement to engage in collective bargaining, and the unequivocal refusal of rival unions. A Soundararajan, a member of the Centre of Indian Trade Unions (CITU) and a supporter of SILWU, asserts that almost 90% of the workforce is affiliated with SILWU, thereby establishing it as the predominant representative organization for workers at the company. Workers, with an average income of 25,000 rupees ($298), are requesting a 50% upward adjustment in their pay over the next three years, distributed gradually.
Soundararajan further alleged that Samsung exerted pressure on its employees to achieve extraordinarily stringent production targets, including the completion of product assembly for items such as refrigerators, washing machines, and televisions within a time frame of 10 to 15 seconds. Furthermore, he said that employees not only labor at a rapid pace but also endure extended periods of uninterrupted overtime and are subjected to hazardous working environments. Furthermore, there were accusations of management's efforts to coerce workers into disaffiliating from the union, which included making threats against their families.
Work regulations and opposition from labor unions
The charges of labour rights breaches have been vehemently refuted by Samsung India, which asserts its compliance with all pertinent labour legislation. Meanwhile, CV Ganesan, the Labour Welfare Minister of Tamil Nadu, provided assurance to union officials that negotiations were in progress to reconcile the problems and attend to the concerns of the workers.
One of the workers on strike, Sijo (a pseudonym), clarified that while employees have always worked without any grievances, the working conditions have deteriorated in recent years. Hundreds of his colleagues gather daily at the protest site, dressed in their Samsung India uniforms. Lacking any adequate restroom facilities, the workers depend on outdoor areas while SILWU supplies food and water. Sijo argues that the inadequate compensation has failed to match the increasing expenses of daily life, therefore burdening the families of workers.
Analysis of Samsung's Historical Opposition to Labor Unions
Prior to 2020, Samsung had a well established reputation for actively opposing unionised representation among its employees. Nevertheless, this position changed due to rigorous public examination and legal disputes in which its chairman was prosecuted for manipulating the market and accepting bribes. Notwithstanding this shift, a significant number of workers in India and other countries believe that international corporations, such as Samsung, persist in opposing domestic labor regulations that safeguard workers' legal entitlement to form labor unions and participate in collective bargaining.
India boasts a robust heritage of unionized labor, with a vast number of workers affiliated with unions, a significant number of which are supported by leftist legislative parties. These unions frequently use their substantial power to guarantee the enforcement of labor laws and the provision of equitable treatment to workers.
The Impact of Multinational Corporations on Labour Relations in India
Over the past few years, an increasing number of global enterprises, such as Apple and Amazon, have set up manufacturing facilities in India. Nevertheless, labor advocates claim that a significant number of these corporations take advantage of their employees by offering meager salaries and imposing excessive working hours, all the while exerting pressure on local governments to curtail workers' rights. The labor economist Shyam Sundar highlighted that firms frequently use "human resource strategies" as a means to impede the establishment of unions, particularly in emerging nations such as India.
Sundar suggests that a prevalent strategy employed by firms is to dissuade employees from becoming members of external unions, instead advocating for the establishment of internal "worker led" unions. In house unions typically enable management to maintain a certain level of control over the undertakings of the union. According to Soundararajan, the workers at the Chennai facility declined the arrangement suggested by Samsung management.
Utilisation of Untrained Labour
Another tactic used by multinational firms is the enlistment of young, unskilled laborers, especially from rural regions, by providing them with somewhat reasonable first wages. Typically, these people are employed on a temporary basis, with the expectation of long term employment that seldom comes to fruition. In his observation, Sundar highlighted the common occurrence of salary stagnation among these "trainees," characterized by minimal or no progressive increases over time.
Moreover, the ascent of "flexible workers" employed on contractual agreements has emerged as a crucial strategy for firms to weaken attempts to form labor unions. The employment of a contingent workforce enables firms to establish a labor pool that is more cooperative and less inclined to request improved salaries or working conditions. As to official statistics, around 40% of the workforce engaged in Indian industries in 2022 were classified as contractual laborers.
The Task of Implementing Labor Legislation
A primary obstacle in achieving equitable labor standards in India is the unwillingness of many international firms to adhere to domestic legislation. Frequently, corporations employ the tactic of threatening to move or suspend their expansion plans as a means to exert pressure on state governments to relax their enforcement of labor laws. Nevertheless, Sundar proposed that workers have the ability to utilize global labor unions as a means to exert pressure on these firms to comply with international labor standards.
Conclusion: A Critical Moment for the Advancement of Labour Rights?
The ongoing strike at Samsung's Chennai plant highlights the wider conflict between multinational firms and local labour workforce in India. Given the large number of workers currently on strike and the complete stoppage of production, the result of this demonstration has the potential to significantly impact labor rights in the nation. Given the growing number of multinational firms in India, the delicate equilibrium between economic expansion and safeguarding the rights of workers continues to be a crucial concern.
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