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Samsung, the South Korean tech giant, has issued a statement reiterating its commitment to India and its ongoing operations in the country, specifically in Tamil Nadu. This statement comes as a direct response to media reports suggesting that Samsung is considering relocating its manufacturing base from the state following prolonged protests at its Sriperumbudur plant.
The protests, which have entered their second month, are led by thousands of workers at Samsung's facility in Sriperumbudur, located just outside Chennai. Their demands center around the recognition of their union and improvements in working conditions. The workers are seeking a substantial wage increase, demanding a raise from Rs 25,000 to Rs 36,000 over the next three years. They are also pressing for the official recognition of their union, backed by the Centre of Indian Trade Unions (CITU).
The Sriperumbudur plant, which has been operational since 2007, has never previously encountered such a large-scale protest. This plant is a critical production unit for Samsung, contributing a significant portion of its annual revenue in India, estimated to be around USD 12 billion. The ongoing strike, which began on September 9, has undoubtedly impacted Samsung's operations and profitability in India.
In response to the protests, Samsung has taken legal action by approaching a district court to secure a temporary injunction against the union. This move aims to prevent protests near the factory and to potentially curb the workers' demands. Samsung's legal action highlights the company's stance on the situation, indicating their desire to maintain control and minimize disruption to their operations.
The situation at Samsung's Sriperumbudur plant underscores the growing concerns around worker rights and conditions in India's manufacturing sector. The protests have brought attention to the demands for better wages, improved working conditions, and the recognition of labor unions in the sector. It remains to be seen how the situation will unfold and whether Samsung will be able to reach a resolution with the protesting workers.
Source: Samsung denies reports of shifting manufacturing base out of TN