Samsung's smartphone production won't be affected by a strike in Indian factory over money and respect

That's what a worker outside the Samsung factory in Sriperumbudur (one of Samsung's two Indian factories) said – he did not disclose his name. The reason is that there's an ongoing strike at the Sriperumbudur factory which is joined by almost half of the workforce, a total of 1,800.

Production at Samsung Electronics' key plant in southern India was disrupted for a second consecutive day on Tuesday as hundreds of employees went on strike demanding higher wages. Top executives are working to resolve the unusual labor unrest.

The Sriperumbudur plant manufactures electronic products other than smartphones, so the Galaxy phones production shouldn't be affected. Despite this, the plant contributes 20% to 30% of Samsung's annual $12 billion revenue in India: the strike won't be an easy pill to swallow for Samsung, if it drags on.

Outside the factory near Chennai, protesters erected "Indefinite Strike" posters as hundreds of workers in company uniforms set up tents to shield themselves from the heat. Union leader E. Muthukumar stated that the strike would continue into Wednesday, marking its third day.

The walkout impacted roughly half of the factory’s daily production on Monday as workers pressed for higher wages, better working hours, and official recognition of a union backed by the Centre of Indian Trade Unions.

Samsung shares fell 1.9% in Seoul, as approximately 800 workers signed a register outside the factory to record their protest.

The strike comes just ahead of India's festive season, a peak time for consumer purchases as people buy gifts and personal items, often taking advantage of discounts offered by manufacturers.

What's more, that's the second time Samsung has to deal with major strikes solely in 2024, as the 36,500 members of Samsung Electronics' biggest worker union in South Korea also went on strike in July and August:

• "No pay, no work": a Samsung union declares strike

In late July, however, Samsung said the action did not disrupt production there. Maybe third time's the charm, then?

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