Samsung workers' strike: DMK govt caught between labour rights and investment push

When the DMK government in Tamil Nadu is busy promoting its investor-friendly image, the labour unrest at the Samsung plant in the Sriperumbudur Sipcot industrial park, on the outskirts of Chennai, has come as an embarrassment.

The employees there are demanding the formal registration of a workers’ union. However, the government approach over the issue has drawn flak not only from Opposition parties but also from DMK allies who decry its “anti-labour actions”.

CITU, the trade union wing of the Communist Party of India (Marxists), a DMK ally, has accused the state government of engaging in manipulation and diversion politics instead of restoring the legal rights of workers. Over 600 protesters, including key CPM functionaries leading the demonstration, were arrested for unlawful assembly on Thursday.

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While the Samsung workers demand the registration of a CITU-affiliated union, DMK ministers argue that the management has accepted all 14 demands related to improving basic facilities for workers, except the union registration, which they claim is against HR guidelines.

Month-long protest

The Samsung plant in Sriperumbudur produces televisions, refrigerators, and washing machines, contributing nearly a third of Samsung Electronics’ annual $12 billion revenue from India. This facility is one of two Samsung plants in India; the other is located in Noida, Uttar Pradesh, which produces smartphones.

Workers have raised demands for wage hike and better facilities multiple times over the past three years. However, after the formation of the Samsung India Workers Union (SIWU), affiliated with CITU, in July 2024, a majority of the workers joined the union and sought immediate action on their demands including registration of SIWU as a formal labour union in the company. Currently, 1,000 out of 1,800 permanent workers at the plant are participating in the protest.

For over a month, close to 1,000 blue-shirted workers have staged protests near the plant, living in makeshift tents. All attempts by the state government, including peace talks and the arrest of protesters, have failed.

When police dismantled the protest shed on the night of October 8, the workers regrouped and continued their demonstration in heavy rain the following morning (October 9). Over 600 were forcibly removed from the protest site and arrested. In response, the workers, backed by the CPM, moved the Madras High Court and received an order allowing them to continue their protest at a different location near the plant.

Diversionary tactics?

Meanwhile, Tamil Nadu Industries Minister TRB Raja and Finance Minister Thangam Thennarasu stated that the registration of the union was the only demand Samsung could not immediately agree upon due to an ongoing court case.

“Chief Minister MK Stalin has been focusing on this issue from day one. He assigned three ministers, including finance, industries, and labour, to resolve it. We have held several rounds of talks for over 12 hours. The Samsung management is ready to accept all demands of the workers except the registration of the CITU-backed union, which is subjudice,” they said.

Also Read: TN: Samsung workers continue strike at Sriperumbudur, demand recognition of union

They said many workers not involved in the protest are concerned about losing their jobs due to the unrest. “The salary scale ranges from Rs 25,000 to Rs 70,000. The management has agreed to raise wages and provide all basic facilities. The protesters mentioned 14 demands. We are ready to resolve all of them, but it is not necessary to continue the protest,” they added.

Political backing

Deputy Chief Minister Udhayanidhi Stalin emphasised that Samsung does not want to recognise a workers' union backed by a political party but is ready to agree to other demands raised by the workers.

“Samsung is a multinational company with its own regulations. It will not accept a workers' union backed by a political party. This is the company's stance, and the issue is in court. The government is making every effort to resolve this swiftly,” he said.

However, protesters contend that while talks were conducted, the government released a memorandum of agreement signed by management and workers not involved in the protest.

Spoiling image?

The DMK government conducted a global investors' meet in January 2024, while Chief Minister Stalin signed 18 MoUs during his recent trip to the US.

The Industries Department announced that several electronics majors are eager to invest in Tamil Nadu, highlighting the state's investor-friendly landscape. However, will this month-long unrest at the Samsung plant take a toll on the government’s image?

A senior official in the Industries Department told The Federal that the Samsung workers’ unrest will not affect other investments.

“Tata Motors launched its manufacturing plant two weeks ago. Jabil, a key supplier of Apple, signed a pact last month to open its plant in Trichy. On the other hand, the state is emerging as a major player in the global capacity centre sector. Since Samsung's regulations prevent the recognition of a union backed by a political party, the government is unable to resolve this issue immediately. We are awaiting the court order,” the officer stated.

Legal recourse

SIWU president E Muthukumar told The Federal that the DMK government has forced workers to seek legal recourse and manipulated the memorandum of agreement.

“Workers have a legal right to protest, but the DMK government and its police have no understanding of the constitutional rights of workers. They demand the registration of the union and basic facilities like quality food, increased restroom facilities, and wage hikes. Instead of resolving the issue, the government is diverting attention by arresting protesters and releasing an agreement not supported by them. Is this a Dravidian model government or just diversionary politics,” he wondered.

Also Read: 'Get back to work immediately': TN govt urges striking workers of Samsung India

He alleged that the DMK government is employing anti-labour and unconstitutional methods to arrest workers. “When workers announced a peaceful protest and were ready for talks, the government used police force to unleash unlawful activities. We were compelled to go to court because the government has not acted lawfully,” Muthukumar said.

CPM slams Stalin

CPM state secretary K Balakrishnan questioned Chief Minister Stalin for failing to resolve the union formation issue, despite several labour unions affiliated with his own party having engaged in protests in the past.

“The DMK has its own labour union for workers in various sectors. When Samsung workers wanted a CITU-affiliated union, we supported them. If the government can modify rules to attract investments, why is there not the same urgency to resolve workers' issues? Many CITU-affiliated labour unions are already functioning in the same SIPCOT premises as Samsung,” he remarked.

When asked if the Samsung workers' unrest would create a rift between his party and the DMK, he responded, “We expect an amicable solution. We have been told that there will soon be a meeting with CM Stalin regarding the issue. There are many issues where allies may differ, but that will not affect the electoral alliance.”