The South Korean tech giant Samsung is planning to invest $117 million in its South Indian facility in Chennai. Since last September, Samsung’s Chennai facility has been in the headlines due to union strikes for low wages.
Union Strikes in Chennai Facility
In September, the workers went on a five-week strike at the Sriperumbudur plant demanding the recognition of the union and an increase in wages. The strike ended with the company recognizing their demand.
In February, the plant faced another sit-in of 500 workers over the suspension of three employees. The labourers accused the company of suspending employees without a hearing.
These anomalies indicate high tension between the South Korean company and the Indian labourers. The union accuses the company of using anti-union tactics, however, Samsung maintains that it complies with all the applicable laws.
After these burning months of tension, this investment announcement is made by India’s Minister for Industries without giving any timeline. The minister said that this investment reinforces Samsung’s faith in the labour force of Tamil Nadu. Potentially, this investment will include the addition of 100 jobs to the facility. The factory currently employs more than 2000 workers and accounts for a fifth of Samsung’s India sales.
Notably, Samsung has not given any official statement on this investment plan.
