Samsung is once again in the news for the wrong reasons. The strike by a section of its workers owing allegiance to its labour union, which in turn is backed by the Centre of Indian Trade Unions (CITU), entered its third week. Even as the impasse threatens to spillover by way of affecting industrial peace in the State, the Government would do well to take speedy steps to resolve the matter. For it is Tamil Nadu’s image as an industrial hub and a model for employer-employee relations that is at stake.
The present crisis is over the suspension of some workers owing allegiance to the union, but it is merely yet another manifestation of the simmering tension that has lasted for around a year. It was in June 2024 that Samsung workers decided to form a union at the Kanchipuram plant. This they declared was to fight for better working conditions. They also claimed that the company did not have any clear labour policy. It is to be noted here that this was the second union ever to be formed in Samsung operations worldwide, the first being in Japan. The management objected and there were protests and stoppage of work in the months of September and October 2024.
The State Government unfortunately let the matter get out of hand by delaying its mediatory role which when given, was – according to the union – extremely biased in favour of the management. In the meanwhile the company filed a case objecting to the use of its name by the union which called itself Samsung India Workers Union (SIWU). It claimed that this was in violation of trademark laws. Even as this was being argued, following Government mediation, the management agreed to recognise the union, pending court decision on the name. Unfortunately for Samsung and the Government, the judgement went in favour of the union. Six weeks were granted for registration formalities.
If that was in December, what caused the Government to dither over the registration till the very last day of the court deadline remains a mystery. It was only on January 27th that SIWU was formally registered. This unexplained delay only exacerbated what was already a stressed scenario and within a week of registration, fresh trouble as explained above erupted. The workers, backed by CITU have now called for a pan-industry strike on March 8. Earlier, workers in factories in Oragadam held a token protest to express solidarity. In short, trouble seems to be spreading.
While the usual accusations of political interference, outside influence, etc, are being bandied about, there is risk of the seriousness of the matter being lost sight of. Samsung may need counselling given its meagre experience in dealing with trade unionism and that too only in a highly regimented culture like Japan. Indian labour is different and so are the labour laws. The Government itself seems caught in a bind and seems infirm of purpose. Last heard, a State Minister has been asked to mediate.
`Speed is of the essence. When even backward states of India are jumping on the industrial bandwagon by offering huge incentives, what still makes a high-cost hub like Tamil Nadu attractive is its pre-existing industrial ecosystem. If that is to be vitiated by labour unrest it may be a strong deterrent for potential investors. And those here may begin evaluating the shifting of their plants. If it has happened earlier in West Bengal, it can happen in Tamil Nadu as well. And then attracting investors back will be an uphill task. The State Government will do well to appreciate that it has a crisis on hand and work towards a speedy and most importantly, amicable resolution.