Hundreds of workers continued their strike near the Samsung’s manufacturing plant in Sriperumbudur, near Chennai, on Tuesday (October 8, 2024).

“The workers have not accepted the terms mentioned in the Memorandum of Agreement (MoA) that was signed on Monday (October 7, 2024). This was signed by the workers’ committee, which favours the company. A majority of workers have not agreed to it and continue to strike,” said E. Muthukumar, Kancheepuram district secretary, Centre of Indian Trade Unions (CITU).

Since the beginning of the strike, the company has maintained it would communicate directly with its workers, and not engage with any unions. CITU, however, has demanded the recognition of the newly formed Samsung India Workers’ Union. “First, the union has to be recognised, and then we will discuss the terms,” Mr. Muthukumar added.

On Monday, October 7, 20204, the Tamil Nadu government said an MoA was signed between the company and the workmen committee.

According to the MoA, the company shall, in consultation with the workmen committee, implement measures to enhance the competitiveness of wages. And as an immediate measure and recognising the current financial situation, the company will provide an interim special incentive by the name of ‘Productivity Stabilization Incentive’ equivalent to ₹5,000 per month, effective from October 2024 up to March 2025.

The modalities of the payment will be finalised in consultation with the workmen committee. This special incentive shall be considered with the annual increment in wages for the financial year 2025-2026, which will be finalised in consultation with the committee during the wage negotiations.

Workers at Samsung India’s manufacturing facility in Sriperumbudur have been on a strike since September 9, 2024, demanding recognition of their newly formed union and an increase in wages. The Samsung Electronics’ facility in Sriperumbudur has 1,800 workers, and 1,000 workers joined the protest.