Production at a key Samsung Electronics plant in southern India was disrupted on Tuesday as hundreds of employees staged a strike demanding higher wages and improved working conditions, CNN reports.
The rare labor unrest at the Sriperumbudur facility, located near Chennai, has raised concerns for Samsung, which considers India a crucial growth market.
The plant, one of two Samsung factories in India, employs around 1,800 people and produces electronics products, contributing significantly to Samsung’s $12 billion annual revenue in the country.
The workers, who have set up tents outside the factory, are demanding higher wages, shorter working hours, and most importantly, recognition of a union backed by the Centre of Indian Trade Unions group.
The strike, which entered its third day on Wednesday, has affected about half of the plant’s daily production.
Samsung’s Southwest Asia CEO, JB Park, and other senior executives have visited the factory to try and resolve the dispute. However, union leader E. Muthukumar stated that no settlement had been reached as of Tuesday.
The strike coincides with India’s festive season, a period of high demand for consumer electronics as shoppers buy gifts and personal items. In South Korea, Samsung Electronics’ biggest worker union staged a strike in July and August, demanding higher wages and benefits. However, Samsung maintained that production was not impacted in that instance.
In India, the workers are specifically demanding equal pay for those with the same length of experience. Several employees, speaking on condition of anonymity, have voiced their concerns, which have been echoed by some Indian political leaders who attended the protest.
