Samsung's Indian Plant Faces Strike Amid Labor Dispute

Samsung Electronics' production at a key plant in Sriperumbudur, India, has been disrupted by a strike for higher wages. The protest has impacted the plant's output and involves around 1,800 employees. Top Samsung executives are currently negotiating with labor leaders to resolve the situation ahead of India's festive season.

Samsung Electronics' production at a crucial facility in southern India was disrupted for the second consecutive day due to a strike by hundreds of employees demanding higher wages. Senior executives are attempting to resolve this uncommon labor dispute.

The plant in Sriperumbudur, the smaller of Samsung's two Indian factories, employs about 1,800 workers and significantly contributes to Samsung's $12 billion annual revenue in the country. Lasting impacts on production are already evident, with the plant contributing to 20%–30% of Samsung's sales.

Union leader E. Muthukumar stated that the strike will extend into a third day as workers press for improved wages, better hours, and union recognition. The strike affects half the daily production, with workers setting up protest tents outside the factory in Chennai. Samsung's top executives, including CEO JB Park, are on-site negotiating a solution.

(With inputs from agencies.)