Operations affected at Samsung plant near Chennai as workers’ strike continues for second day

Operations at Samsung Electronics' plant in southern India were disrupted for a second day on Tuesday by hundreds of employees striking for higher wages, in a rare episode of labour unrest for the South Korean company.

The strike at India's biggest consumer goods company comes ahead of the festive season, when sales of electronics items boom, bought by consumers as gifts or for personal use. Samsung competes with LG Electronics and domestic brands.

The plant is one of two factories in India, which Samsung counts as a key growth market. Two sources with direct knowledge of the matter said it contributed 20% to 30% of the company's annual revenue of $12 billion in the South Asian nation.

Posters reading "Indefinite Strike" went up outside the factory in Sriperumbudur near the city of Chennai, where hundreds of workers in company uniforms set up tents to shade them from the heat.

"We are striking for the second day," said union leader E. Muthukumar.

About half of the factory's daily production was affected when many workers stayed away on Monday, and the protest continues to press their demand for higher wages, better working hours and company recognition for the union.

Samsung India did not respond to a request for comment. On Monday, a spokesperson said it actively engaged with workers "to address any grievances they may have and comply with all laws and regulations".

Samsung employs about 1,800 workers at the plant, which makes items such as refrigerators, washing machines and televisions, while a bigger plant in the northern state of Uttar Pradesh turns out smartphones.

In South Korea, the 36,500 members of Samsung Electronics' biggest worker union who have been demanding higher wages and benefits, held a strike for several days in July and August.

In late July, however, the company said the action did not disrupt production there.

In India, its workers are demanding equal remuneration for those with the same length of experience, according to at least half a dozen employees Reuters spoke to on condition of anonymity.

One poster outside the factory exhorted state labour officials not to support the management, advising instead: “Discuss and solve demands from the labour union with union officials.”