Samsung Electronics has warned striking workers at its home appliances factory near Chennai, India, that they will not receive wages if they continue their protest and may face termination. The strike, which began on September 9, involves over 1,000 workers demanding higher wages and union recognition. The plant contributes significantly to Samsung’s $12 billion annual revenue in India.
In response, Samsung has sued the union in court and sent emails to workers, stating, “You shall not be entitled to wages from 09.09.2024 to the date you report back to work on ‘No work No Pay’ basis.” Workers have also been warned they may be dismissed if they do not return within four days. The company stated it is open to resolving issues through discussions and emphasized the safety and wellbeing of its employees.
The factory produces appliances like refrigerators, TVs, and washing machines, while another Samsung plant in Uttar Pradesh, which manufactures smartphones, has had no issues. Workers are currently earning an average of 25,000 rupees ($300) per month and are demanding a raise to 36,000 rupees ($430) over three years. However, Samsung has been reluctant to recognize unions backed by national labor groups like CITU, and talks with state officials have not yet resolved the dispute.
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We expect the benchmark to trade within the 1,725–1,740 range today.
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