After Samsung faced stiff opposition from employee unions in its home market of South Korea over the last few months, workers in one of its key overseas markets – India – are now striking to demand better wages and working conditions.
Hundreds of workers at Samsung Electronics southern India plant boycotted work for a third day on Wednesday, disrupting production at the facility, even as the company is reportedly planning cuts to its overseas global workforce.
The plant in Sriperumbudur, which makes products such as televisions, refrigerators and washing machines, is believed to contribute between 20-30 per cent of Samsung’s annual $12 billion (A$17.98 billion) revenue in India.
The workers want Samsung to recognise their union, raise wages and improve working hours. Samsung Southwest Asia CEO JB Park has reportedly travelled to the country to diffuse the situation.
“They (Samsung) will soon have to talk to us, just like they had to engage with the Korean union there,” said union leader E. Muthukumar, referencing how the company’s senior management were forced to the negotiating table after workers in South Korea intensified their strike.
In July and August, the 36,500 members of Samsung Electronics’ biggest worker union in South Korea decided to strike for several days as they pushed for higher wages and benefits
A spokesperson for Samsung India, the biggest consumer electronics company in India, said on Monday that it actively engaged with workers “to address any grievances they may have and comply with all laws and regulations.”
The company has so far not agreed to recognise the union backed by the local labor group, the Centre of Indian Trade Unions. The strike has not yet extended to Samsung’s other Indian plant in Uttar Pradesh, which makes smartphones.
The employee unrest in India comes as Samsung is reportedly starting to lay off thousands of staff globally, impacting up to 30 per cent of employees in some divisions by the end of this year, according to Reuters.
Sales and marketing departments are reportedly being trimmed by 15 per cent, while up to 30 per cent of administrative staff are expected to be laid off.
Samsung has about 25,000 sales and marketing staff, which means that the latest cuts could affect more than 3,700 employees.
The layoffs are expected to impact employees across Samsung divisions in the Americas, Europe, Asia, and Africa. Some staff in China and India will be losing their jobs, impacting up to 1,000 people in India alone.
Samsung has told Reuters that its layoffs are routine, and part of its plan to become a more efficient company.
The company has nearly 270,000 employees globally across 76 countries, says its website, citing data from late last year. It reported operating profits of $4.9 billion (A$7.34 billion) last fiscal year, and saw a 900 per cent increase in profits earlier this year in part due to chip demand spurred by a global surge in artificial intelligence development.
