Samsung India Strikes Wage Agreement With Chennai Plant Workers

Samsung and the members of CITU-backed Samsung India Workers’ Union (SIWU) have reached a pact on wage hikes, promotions and incentives, bringing an end to a nearly eight-month long workers protest at the company’s manufacturing plant in Chennai.

The negotiations, held in the presence of Tamil Nadu labour minister CV Ganesan at the secretariat yesterday, led to a three-year wage agreement covering the period from April 1, 2025 – March 31, 2028.

As per the pact, workers will receive a wage hike of INR 9,000 in FY26, followed by INR 4,500 each in FY27 and FY28, amounting to a total increase of INR 18,000 over three years.

Additionally, based on experience, workers will get a special wage hike ranging from INR 1,000-4,000 over the three-year period. The agreement also includes a one-time promotion for workers who have completed six years of service as of May 31, 2025, but have not received any promotion so far. Other benefits include additional leave and incentives.

“At Samsung, employee welfare remains a top priority. We have constructively engaged with all our workers at the Chennai plant and are delighted to announce a mutual agreement to enhance wages and benefits for the next three years,” a Samsung India spokesperson told Inc42.

These benefits and wage hikes were proposed earlier this year, and the workers engaged in protests so long under the influence of Centre of Indian Trade Unions (CITU), are brought in agreement now.

However, the company will continue to investigate and take disciplinary action against the suspended workers for violating the company’s “policies”, the source added.

“Happy to announce that after sustained dialogue and responsible discussions from all sides, all differences pertaining to the Samsung unit have been settled amicably,” Tamil Nadu industries minister TRB Rajaa said on X.

The development comes months after the workers halted its month-long strike at the South Korean tech giant’s Sriperumbudur factory, in March, where the protesting employees resumed work at the unit in batches from March 8.

In February, the tech giant had to request for the state government’s intervention on the workers’ protest to ensure “ease of doing business”.

Apart from this, Samsung has also been considering shifting some of its smartphone and electronics manufacturing to India, amid the latest retaliatory tariffs imposed by the US.

Earlier this month, Tamil Nadu chief minister MK Stalin announced the launch of Tamil Nadu Electronics Components Manufacturing Scheme (ECMS) to bolster local electronics manufacturing.

The scheme aims to attract INR 30,000 Cr worth of investments and generate 60,000 jobs in the state, while it also looks to promote local manufacturing of electronics components, and complements the state’s Semiconductor and Advanced Electronics Policy, which was introduced in 2024.