Background of the Strike
A labour strike at Samsung’s Sriperumbudur facility in India has drawn attention to the Centre of Indian Trade Unions (CITU), an influential labour organization. The strike, now in its fifth day, has disrupted production and brought focus to the challenges faced by India’s “Make in India” initiative, which aims to enhance domestic electronics production and attract foreign investment.
Impact on India’s Manufacturing Goals
The ongoing protests at the Samsung plant highlight the pressures on Prime Minister Narendra Modi’s strategy to expand the country’s manufacturing sector. Workers, who earn an average of 25,000 rupees ($300) per month, are demanding a wage increase to 36,000 rupees ($430) over three years due to rising living costs.
Role of CITU in the Strike
CITU, backed by India’s prominent hard-left political party and with 6.6 million members, is leading the charge for improved worker rights and wage revisions. Historically focused on the auto sector, CITU is now targeting the growing electronics sector, advocating for better labour practices and collective bargaining opportunities.
Wider Industry Implications
The Samsung strike is significant as it affects about one-third of the company’s $12 billion annual revenue in India. This level of industrial unrest is rare in the electronics industry, which has previously seen notable strikes at iPhone supplier facilities, but this current strike reflects increasing discontent over wages and working conditions.
CITU’s Broader Goals
CITU is also negotiating with other electronics firms, including Flex and Sanmina, aiming to secure better wages and union recognition. Flex has stated that it adheres to high global standards for labor practices. The federal and state governments have yet to comment on the situation.
Company Response
In response to the strike, Samsung has announced that it is engaged in discussions with its workers to address and resolve the issues promptly. The strike underscores the broader challenges facing multinational companies in India and highlights the need for improved labour laws and practices.
