Samsung. Representative image
Reuters file photo
Chennai: South Korean electronics major Samsung on Monday night announced that it has arrived at a Memorandum of Agreement (MoA) with its “workmen representatives” by promising a 15-point action plan that includes measures to enhance the competitiveness of wages and operation of a channel for collecting employees’ voices.
However, the Centre of Indian Trade Unions (CITU) said the 29-day strike will continue and that no solution was arrived at during the talks that the Tamil Nadu government held with representatives of the Samsung management and striking employees of its Sunguvarchatiram plant.
“The strike continues. No agreement has been reached,” Muthu Kumar of the CITU, the face of the protests, said. He said the MoA was signed with employees of Samsung India, who didn’t participate in the protests, and not with the protesting workers.
The MoA, signed between Samsung India Managing Director Yoon Sung-hyun and seven representatives of the employees, said both sides will collaborate to mitigate the difficulties faced by workmen and enhance the company's competitiveness by resolving the “ongoing illegal strike” which commenced on September 9.
The MoA, accessed by DH, was arrived at after a high-level team comprising Industries Minister T R B Rajaa, Labour Minister C V Ganesan, and MSME Minister T M Anbarasan, met the representatives of Samsung and the employees. Rajaa later took to X platform to express the hope that the protesting employees will call off their strike soon and resume work.
Though it didn’t talk about recognition of Union, a key demand of the striking employees, the MoA spoke about operating a channel for collecting Workmens' Voices and actively improve it, while identifying additional matters, and discussing further improvements in the working conditions.
Samsung also said the company will positively consider the request of the employees to support the returnees for a smooth return to work by providing training and other programmes for a certain period of time.
The company said in a statement that it will engage with workmen directly to address the difficulties faced by them. “We will also work with them for the development of the community in Chennai as a responsible company,” a spokesperson said.
“As an immediate measure and recognising the current financial situation, Samsung will provide an interim special incentive equivalent to INR 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,” the MoA said.
This special incentive shall be considered with the annual increment in wages for the 2025-26 fiscal, that will be finalised in consultation with workmen committee during the wage negotiations, the MoA said, adding that the operation of air conditioned buses will be expanded by next year to all 108 routes.
Diversify the cafeteria menu, increase in meal allowances, upgrading break rooms and restrooms in the manufacturing building, installation of canopies between buildings, enhancing the number the vacations that can be availed by the workmen, and launch the "MD's People First Promise” are some of the salient features of the MoA.
The MoA signing came on the 29th day of the protests which created national headlines. The Union Government had in September written to the Tamil Nadu government seeking an early resolution to the strike.
Employees of Samsung Electronics have been protesting outside the plan since September 9 demanding recognition to the Samsung India Workers Union, which is yet to be recognised by the company despite demands for its constitution for quite some time.
The development comes at a time the Tamil Nadu government is bullish on attracting investments in several sectors, especially electronics. Global technology giant Cisco launched production from the Flex factory last week, while Jabil is setting up a plant in Tiruchirapalli. Moreover, Tamil Nadu is home to key Apple Inc suppliers like Foxconn, Pegatron, and Tata Electronics.