Samsung India Reaches Agreement With Workers To Resolve Strike At Chennai Plant

Samsung India has signed a Memorandum of Agreement (MoA) with a group of workers to resolve the ongoing strike at the company’s plant in Sriperumbudur, near Chennai.

Samsung India has agreed to several demands aimed at addressing the challenges faced by the workforce. 

Last month, the union government urged the Tamil Nadu government to expedite a resolution to the strike. Samsung Electronics employees have been protesting outside the plant since September 9, demanding recognition of the Samsung India Workers Union, which the company has yet to acknowledge, despite long standing requests for its formation.

According to an ET report, the company said it will prioritise implementing various measures to improve the working environment for the welfare of its workers. 

Samsung will also engage in continuous consultations with a workers’ committee to enhance wage competitiveness. Additionally, the company will offer an interim special incentive, termed the productivity stabilisation incentive, amounting to INR 5,000 per month from October 2024 to March 2025. The specifics of this payment will be finalised in discussions with the workers’ committee.

“This special incentive shall be considered with the annual increment in wages for the year 2025-26, that will be finalised in consultation with workmen committee during the wage negotiations,” the company said in the MoA, reviewed by ET.

The company has also agreed to expand the operation of air-conditioned buses from the current five routes to all 108 routes by next year. Additionally, it will increase the number of workmen family invitation events from four to six times annually and provide a gift worth INR 2,000 to each family attending an event.

“In the unfortunate event of the death of an employee while in service, the company shall provide an additional immediate assistance of INR 1 Lakh to the family to take care of their immediate needs,” Samsung added.

Additionally, the company will open a new medical room, diversify the cafeteria menu, increase meal allowances, and upgrade break rooms, restrooms, and lockers. It will also install canopies between buildings, offer more vacation days, and provide a INR 2,000 gift card to workers on the birth of a child.

However, according to another report, the Centre of Indian Trade Unions (CITU) stated that the 29-day strike will continue, as no resolution was reached during the talks held by the Tamil Nadu government with representatives of Samsung management and the striking employees of its Sunguvarchatiram plant.

The development comes at a time when union labour minister Mansukh Mandaviya has directed aggregator platforms to onboard all eligible gig workers onto the e-Shram Portal within three months. The minister issued this directive during a meeting with representatives from Urban Company, Swiggy, Zomato, Porter, Even Cargo, Amazon, Uber, and Ola on September 18. 

Launched in 2021, the e-Shram portal serves as a national database for unorganised workers, including migrant workers, construction workers, and gig and platform workers.

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