Samsung Workers' Strike in Chennai Could Hit India's Manufacturing if Dispute Continues

Samsung Workers Strike: Over 1,000 Samsung employees have been on strike against the tech giant since September 9 as they demand better wage hikes and 8-hour work shifts.

Muthukumar, the Tamil Nadu Secretary of the Centre of Indian Trade Unions (CITU), reportedly stated on Monday that workers protesting against low wages and long hours at Samsung India may even resort to legal action if the police try to put a halt on their strike near the electronics plant.

The protest has been ongoing for some time and so far, no negotiations have taken place. Experts warn that this delay in resolving the dispute could pose a risk to India’s manufacturing sector. According to reports, the labor strike at Samsung’s Sriperumbudur plant in Tamil Nadu is escalating, which might threaten the manufacturing ecosystem in the area as per the Global Trade Research Initiative (GTRI).

A cautionary sign for India's Manufacturing Sector?

"If the strike at Samsung's Sriperumbudur plant is not resolved soon, India risks losing significant ground in its quest to become a global manufacturing powerhouse," the Global Trade Research Initiative (GTRI) states.

Both the state and central governments need to take an immediate action to resolve the dispute, as per the think tank. If the intervention is delayed at any point, the matter could end up in court. This can eventually put the state’s reputation as the 'leading electronics manufacturing hub' at risk.

It is worth noting that Tamil Nadu, alone, contributes nearly 34 per cent to India's electronics exports.

"Delays in resolving the strike could lead to job losses, stalled development, and a significant decline in investor confidence. Both the state and central governments need to act quickly to prevent the spread of unrest to other key manufacturers in the region," GTRI Founder Ajay Srivastava reportedly said in a statement.

FTA at Risk

The protest also comes at a troubling time when India is in the process of reviewing its Free Trade Agreements (FTAs) with South Korea and other ASEAN (Association of Southeast Asian Nations) nations. If the situation escalates, it could negatively affect the FTA negotiations.

Srivastava also added that India needs a fast and efficient dispute resolution system for large companies, including multinational corporations (MNCs).