'No Work, No Pay': Samsung Warns Striking Indian Workers as Row Escalates

Samsung Electronics has warned its striking workers in southern India 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 Samsung workers have since September 9 disrupted work and protested in a nearby makeshift tent close to its home appliances factory near the city of Chennai. 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 join work within four days, they will need to explain why they “should not be dismissed from service.”

Samsung did not respond to a request for comment. Last week, the company told Reuters in a statement it had initiated discussions with workers at the plant “to resolve all issues at the earliest”.

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.

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 recognise any union backed by a national labour group like CITU, and talks with workers and state officials have not yielded a resolution.