Indian police release striking Samsung workers detained for planning protest march
Business
The detention marked an escalation of a strike by workers at the Samsung home appliance plant
CHENNAI (Reuters) – Indian police late on Monday released most of the 104 striking workers at a Samsung Electronics plant who were detained for planning a protest march without permission, with the dispute disrupting output at the factory for the past week.
The detention marked an escalation of a strike by workers at the Samsung home appliance plant near Chennai in the state of Tamil Nadu. Workers who want higher wages have since Sept. 9 stopped work at the plant that contributes roughly a third of Samsung's annual India revenue of $12 billion.
The Samsung protests have cast a shadow on Indian Prime Minister Narendra Modi's plan of courting foreign investors to "Make in India" and tripling electronics production to $500 billion in six years. Lured by cheap labour, foreign companies are increasingly using India for manufacturing to diversify their supply chain beyond China.
On Monday, the workers planned to start a protest march, but were detained as no permission was given since there were schools, colleges and hospitals in that area, according to senior police officer of the Kancheepuram district K. Shanmugam.
Late on Monday night, all detained workers, except for three were released, said A. Soundararajan, state president of influential labour group, the Centre of Indian Trade Unions (CITU), which is supporting the Samsung strike.
Samsung workers have been protesting at a makeshift tent near the plant, demanding higher wages, recognition for a union backed by CITU and better working hours.
Samsung is not keen to recognise any union backed by a national labour group such as the CITU, and talks with workers, as well as state government officials, have not yielded any resolution.
The CITU Tamil Nadu Deputy General Secretary, S. Kannan, condemned the police action, saying "This is an archaic move by the state government."
Despite Monday's police action, 12 union groups, including one affiliated with the ruling party of Tamil Nadu, said in a public notice dated Sept. 11 that they will stage a protest in support of the striking workers in Chennai on Wednesday, a move that could intensify the tensions between the company and the workers.
The protests add to Samsung's challenges in India, a key growth market.
The South Korean company is planning job cuts of up to 30% of its overseas staff in some divisions, including in India. And India's antitrust body has found Samsung and other smartphone companies colluded with e-commerce giants to launch devices exclusively, violating competition laws, Reuters has reported.
Samsung did not respond to a request for comment on Monday, but on Friday said it has initiated discussions with workers at the Chennai plant "to resolve all issues at the earliest."
Video footage from Reuters partner ANI showed dozens of Samsung workers wearing the company uniform of blue shirts being transported in a bus to a hall.
The Samsung plant roughly employs 1,800 workers and more than 1,000 of them have been on strike. The factory makes appliances like refrigerators, TVs and washing machines. Another Samsung plant that makes smartphones in the northern state of Uttar Pradesh has had no unrest.
