Samsung shares decline amid ongoing workers’ strike at Indian plant
The strike, which commenced on Monday, September 9, has seen hundreds of employees demanding the recognition of their union, increased wages, and an adjustment to their working hours.
Shares of Samsung Electronics experienced a significant decline of over 3% on Friday, amid the ongoing strike by workers at its plant in southern India, which has now extended into its fifth day, severely hampering production within the consumer electronics division. The strike, which commenced on Monday, September 9, has seen hundreds of employees demanding the recognition of their union, increased wages, and an adjustment to their working hours. This action represents one of the most substantial strikes seen in India in recent years.
Negotiations involving representatives from the worker union, Samsung’s management, and officials from the local labour department failed to yield a resolution on Thursday concerning pay and workplace conditions. As reported by Reuters, approximately 85% of the 1,700 workforce at the Chennai facility has participated in the strike, highlighting the scale of the unrest.
The Chennai plant, notable for manufacturing various electronic appliances such as televisions, refrigerators, and washing machines, is one of Samsung’s two factories in India. This facility plays a crucial role in contributing to the company’s substantial annual revenue in India, which is approximated at $12 billion, with this particular plant accounting for as much as 30% of that total.
A spokesperson for Samsung indicated that the company is committed to addressing worker grievances, stating, “We actively engage with our workers to address any grievances they may have and comply with all laws and regulations. We will also ensure that there is no disruption to our consumers.” Despite these assurances, union leader E. Muthukumar expressed the determination of the workers to continue the strike until their demands for improved wages and working conditions are met, stating, “Samsung management asked us to stop striking but would not recognise the union or engage in discussions, hence the strike continues.”
The current strike at Samsung’s Indian facility follows recent similar wage disputes in South Korea, where a significant number of workers from the company’s largest union engaged in strikes during July and August, advocating for better wages and enhanced benefits. Overall, shares of Samsung Electronics on the South Korean stock exchange have dropped over 6% this week, according to LSEG data, reflecting the broader impact of the ongoing labour disputes across its operations.
