'No work, no pay,' Samsung warns striking Indian workers as dispute escalates

By Praveen Paramasivam

CHENNAI, India (Reuters) -Samsung Electronics has warned its striking workers in southern India they will not receive wages if they continue protesting and also face the risk of termination, a company email showed, escalating a dispute between the company and its employees.

Hundreds of workers have disrupted operations and protested in a makeshift tent close to Samsung (KS:005930 )'s home appliances factory near the city of Chennai since Sept. 9. They have been demanding higher wages and recognition of a union at the plant, which contributes roughly a third of Samsung's annual India revenue of $12 billion.

The Samsung strike is one of the biggest in India in recent years and has cast a shadow over Indian Prime Minister Narendra Modi's plan to court foreign investors to "Make in India" and to triple electronics production to $500 billion in six years.

Samsung last week sued the protesting union in a district court, seeking a temporary injunction to restrain sloganeering and making speeches in and around the factory. But the judge on Thursday only called for a swift resolution.

Samsung India's HR team wrote an email to some striking workers on Friday, saying they were engaging in an "illegal strike" and will not be entitled to wages for the period of protest.

"You shall not be entitled to wages from 09.09.2024 to the date you report back to work on 'No work No Pay' basis," said the email, seen by Reuters.

The email also warned that if employees don't return to work within four days, they will need to explain why they "should not be dismissed from service."

Samsung India in a statement said it has informed workers of its policy based on "relevant laws and regulations, and urged them to return to work immediately."

"The safety and wellbeing of our workers are a priority. We remain committed to resolving this issue," the statement added.

At least three striking Samsung workers confirmed to Reuters they received Friday's warning email from the HR team.

The email also said Samsung management had indicated all issues can be resolved by discussions.

The Samsung plant employs roughly 1,800 workers and more than 1,000 of them have been on strike. The factory makes appliances such as refrigerators, TVs and washing machines. Another Samsung plant that makes smartphones in the northern state of Uttar Pradesh has had no unrest.



Samsung workers are earning 25,000 rupees ($300) on average per month, according to powerful labour group CITU that has helped mobilise the factory workers. They are demanding a raise of 36,000 rupees ($430) over three years.

Samsung is not keen to recognize any union backed by a national labour group like CITU, and talks with workers and state officials have not yielded a resolution.

Source: Investing.com