Chennai:

The strike by Samsung Electronics workers in Tamil Nadu’s Sriperumbudur is likely to end today as significant progress has been made in negotiations between the striking workers and the company, according to sources from both sides.

The Centre of Indian Trade Unions (CITU), which represents the workers, will discuss the terms of the agreement in its general body meeting today and announce the withdrawal of the strike if ratified.

Tamil Nadu Chief Minister MK Stalin thanked the CITU, Samsung workers, and the state ministers of small industries, labour, and industries for their efforts in resolving the issue.

The Tamil Nadu Industries Ministry sources have outlined these terms of the agreement:

• All striking workers will return to work immediately.
• No retaliatory actions by management against workers involved in the strike.
• Workers must cooperate fully with the management and avoid any actions prejudicial to the company’s interests.

Both parties have accepted these terms, and the workers have indicated their willingness to end the strike and return to work. However, CITU President Soundararajan, speaking to NDTV, has clarified that the final decision on the strike’s withdrawal will only be confirmed after the general body meeting.

Samsung India has welcomed the decision and thanked the Tamil Nadu government for its support. The company has also assured that it will not take action against workers who merely participated in the strike.

The strike, which began more than a month ago, was driven by demands for union recognition, a pay revision, pay parity, and an eight-hour workday. While Samsung conceded to several of these demands, including a Rs. 5,000 wage increase, the issue of union recognition had been a matter of reluctance.

The Tamil Nadu government played a key role in mediating the dispute, with ministers, including Industries Minister TRB Rajaa, stepping in to facilitate discussions. The strike, which initially impacted production ahead of the Diwali season, saw Samsung mitigating the effects by employing contract workers and reorganising its logistics team.

Samsung Electronics has warned its striking workers in Tamil Nadu they will not receive wages if they continue protesting and also face the risk of termination, a company email showed, escalating a dispute between the company and its employees.

Hundreds of workers have disrupted operations and protested in a makeshift tent close to Samsung’s home appliances factory near Chennai since September 9. They have been demanding higher wages and recognition of a union at the plant, which contributes roughly a third of Samsung’s annual India revenue of $12 billion.

Samsung last week sued the protesting union in a district court, seeking a temporary injunction to restrain sloganeering and making speeches in and around the factory. But the judge on Thursday only called for a swift resolution.

Samsung India’s HR team wrote an email to some striking workers on Friday, saying they were engaging in an “illegal strike” and will not be entitled to wages for the period of protest.

“You shall not be entitled to wages from 09.09.2024 to the date you report back to work on ‘No work No Pay’ basis,” said the email, seen by Reuters.

The email also warned that if employees don’t return to work within four days, they will need to explain why they “should not be dismissed from service.”

Samsung India in a statement said it has informed workers of its policy based on “relevant laws and regulations, and urged them to return to work immediately.”

“The safety and wellbeing of our workers are a priority. We remain committed to resolving this issue,” the statement added.

At least three striking Samsung workers confirmed to Reuters they received Friday’s warning email from the HR team.

The email also said Samsung management had indicated all issues can be resolved by discussions.

The Samsung plant employs roughly 1,800 workers and more than 1,000 of them have been on strike. The factory makes appliances such as refrigerators, TVs and washing machines. Another Samsung plant that makes smartphones in the northern state of Uttar Pradesh has had no unrest.

Samsung workers are earning 25,000 rupees ($300) on average per month, according to powerful labour group CITU that has helped mobilise the factory workers. They are demanding a raise of 36,000 rupees ($430) over three years.

Samsung is not keen to recognize any union backed by a national labour group like CITU, and talks with workers and state officials have not yielded a resolution.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)