Samsung India strike highlights labour movement's growing influence

A strike at Samsung's Sriperumbudur plant in Tamil Nadu has brought attention to India's powerful labour group, the Centre of Indian Trade Unions (CITU), which is backing the protests and signalling its intent to expand its influence in the electronics manufacturing sector. The strike, which has disrupted production at the plant for five days, has also cast doubt on Prime Minister Narendra Modi's plans to boost foreign investment and significantly expand India's electronics manufacturing industry.

The strike, driven by demands for higher wages, involves hundreds of workers who have been staging protests at the plant, which accounts for nearly one-third of Samsung's $12 billion in annual revenue from India. Workers, clad in blue Samsung shirts and red CITU caps, are seeking wage increases from an average of 25,000 rupees ($300) per month to 36,000 rupees ($430) over the next three years.

CITU, a left-wing labour organisation with 6.6 million members, has traditionally focused on India's automotive sector but is now turning its attention to the rapidly growing electronics industry. "There is no opportunity for collective bargaining," said S. Kannan, CITU's deputy general secretary for Tamil Nadu, explaining the lack of proper wage revisions in the sector.

The strike is unusual in India's electronics industry, where such large-scale disruptions are rare. Previous incidents include unrest at iPhone supplier factories in 2021, triggered by unpaid wages and poor working conditions. CITU's involvement in the Samsung strike underscores its broader ambitions to push for greater labour rights at major electronics firms like Flex and Sanmina, where it is already in talks over union recognition and wage negotiations.

Samsung has responded by initiating discussions with the striking workers, stating that it aims to resolve the situation as soon as possible. However, the strike places pressure on India's broader manufacturing goals, as the country seeks to attract foreign investment and triple electronics production to $500 billion by 2029.

The protests come at a time when Tamil Nadu's Chief Minister, M.K. Stalin, is on a U.S. tour courting investments from global companies like Nike and Ford. Meanwhile, experts have pointed out the need for stronger mechanisms to ensure multinationals adhere to Indian labour laws, particularly regarding freedom of association and collective bargaining.