‘No Work, No Pay’: Samsung Warns Chennai Factory Workers of Wage Cuts Amid Protests

New Delhi: Samsung Electronics has warned protesting workers at its Chennai factory that they could face wage cuts or even termination if they continue to strike without returning to work, according to a report by Reuters.

The strike which started on September 9, 024 saw hundreds of workers at Samsung’s home appliances factory near Chennai demanding better wages and recognition of their union. This factory plays a crucial role in Samsung's operations, accounting for nearly one-third of the company’s 12 billion dollars annual revenue in India.

The workers have established a temporary tent near the factory to continue their protests. Their primary demands include a wage increase and official recognition of their union which is being supported by the Centre of Indian Trade Unions (CITU).

The union is advocating for a pay raise that would increase average monthly wages from Rs 25,000 to Rs 36,000 over the next three years. In response to the strike, Samsung has taken legal action, approaching a district court last week to seek a temporary injunction preventing the union from protesting near the factory.

The court did not impose a direct order to stop the protests but urged a quick resolution of the dispute. In an email sent to some striking workers on Friday, Samsung’s HR team referred to the protest as an "illegal strike." The email stated that employees taking part in the strike would not receive wages from 9th September 2024 until they return to work, reinforcing the message of 'No work, no pay.'

The email also cautioned workers that if they did not return to work within four days, they would have to explain why they should not be dismissed. Samsung emphasized that it is open to discussions and encouraged workers to come back to the negotiating table to resolve the issues.

Three workers confirmed to Reuters that they received the warning email from Samsung’s HR team. Despite the warnings, they are continuing their protest, and there’s no indication that the strike will end soon. 

Samsung has not provided further comments on the situation. Last week, the company mentioned that it had started discussions with the workers at the plant and hoped to resolve the issues quickly. However, the ongoing negotiations among the company, workers, and state officials have yet to produce any solid solutions.

The workers' demands are backed by the labor group CITU which has played a key role in organizing the factory workers and advocating for higher wages. CITU is also pushing for Samsung to officially recognize the union, a move that the company has so far resisted.