A labor strike at a Samsung manufacturing plant in Tamil Nadu, India, has disrupted production and cast a spotlight on the role of trade unions, particularly the Centre of Indian Trade Unions (CITU), in organizing workers in the rapidly expanding electronics sector. The protest, which has stretched into its fifth day, highlights the ongoing struggle for fair wages and workers’ rights in a sector that is key to Prime Minister Narendra Modi’s “Make in India” initiative.

The strike has raised questions about the sustainability of India’s ambitions to attract foreign manufacturing giants like Foxconn and Micron, which have been lured by Modi’s business-friendly policies and the availability of cheap labor. As the strike continues, it could become a significant roadblock in India’s goal to triple electronics production to $500 billion over the next six years.

Samsung Strike: A Rare Disruption in India’s Electronics Sector

Hundreds of workers from the Samsung plant, wearing company shirts and red CITU caps, have gathered in makeshift tents near the factory to demand higher wages. These protests, supported by CITU, one of India’s largest trade unions with 6.6 million members, are a rare occurrence in India’s electronics sector, where industrial unrest of this scale has been uncommon. While there have been protests at factories of iPhone suppliers Wistron and Foxconn in recent years, the Samsung strike has gained significant attention due to its potential to disrupt production at a major multinational corporation.

According to CITU, Samsung workers currently earn an average of 25,000 rupees ($300) per month, and they are demanding an increase to 36,000 rupees ($430) over three years. For workers like one protestor who joined Samsung a decade ago and earns only 23,000 rupees a month, these wages are insufficient in the face of rising living costs. The strike, CITU argues, is necessary to challenge the inadequate wage structures in the growing electronics manufacturing sector, where companies often fail to conduct proper wage revisions or offer opportunities for collective bargaining.

The Role of CITU and India’s Trade Union Movement

CITU, founded in 1970, is backed by the Communist Party of India (Marxist) and has historically been active in organizing labor in sectors such as automotive manufacturing, with Hyundai as one of its primary targets. However, with the Samsung strike, CITU is signaling its intention to expand its influence into the electronics sector, which has seen rapid growth under Modi’s leadership.

Trade unions in India have a long history, dating back to the early 20th century when the industrial workforce began organizing to demand better working conditions, wages, and rights. The first trade unions emerged in the 1920s during the colonial period, and over time, they became an integral part of India’s political and economic landscape.

The All India Trade Union Congress (AITUC) was formed in 1920, marking the beginning of organized labor movements in India. Following India’s independence in 1947, trade unions became increasingly politically aligned, with parties like the Communist Party playing a major role in shaping their activities. CITU, as an offshoot of AITUC, was created with a specific focus on representing the interests of the working class and advocating for socialist policies in labor relations.

Over the decades, CITU has been involved in numerous strikes and labor movements, advocating for fair wages, improved working conditions, and the right to unionize. While traditionally focused on sectors like automotive manufacturing and heavy industry, the Samsung strike represents its growing interest in organizing workers in the burgeoning electronics industry.

Implications for India’s Electronics Sector and the Broader Economy

The electronics sector is a cornerstone of Modi’s “Make in India” initiative, aimed at transforming India into a global manufacturing hub. Companies like Foxconn, which assembles iPhones, and Samsung, a major producer of consumer electronics, have been attracted to India by policies offering tax incentives, streamlined regulations, and access to a large, low-cost workforce.

However, the ongoing strike at Samsung threatens to undermine India’s image as a reliable destination for foreign investors. The plant at the center of the strike is responsible for producing a significant portion of Samsung’s home appliances, and disruptions in production could have a ripple effect on the company’s supply chains and revenue. In fact, the plant accounts for nearly one-third of Samsung’s $12 billion annual revenue in India.

While labor strikes are not unheard of in India, they have typically been more prevalent in sectors like automotive manufacturing and textiles. The Samsung strike is one of the largest industrial actions to disrupt production at a foreign multinational in the electronics industry, signaling that labor issues could become a more prominent challenge for companies operating in the sector.

CITU’s Expanding Influence

S. Kannan, CITU’s deputy general secretary for Tamil Nadu, emphasized that the union plans to continue its push for better wages and workers’ rights in the electronics sector. CITU has been in talks with companies like Apple supplier Flex and electronics manufacturer Sanmina, advocating for union recognition and higher wages. “There is no opportunity for collective bargaining,” said Kannan, criticizing the practices of electronics firms that, he claims, pay low wages to their workers.

Flex, in response, stated that it upholds global standards for labor practices and fosters a “respectful and collaborative environment.” Sanmina, along with government bodies such as the Tamil Nadu labor ministry and the federal IT ministry, declined to comment on the ongoing strike.

What the Future Holds

As the strike continues, it could force a reassessment of India’s labor policies and its efforts to attract multinational corporations. Economists, including labor expert K.R. Shyam Sundar, argue that strikes like the one at Samsung could be minimized if the government ensures that multinationals respect labor laws, including the right to collective bargaining. Sundar emphasized the importance of establishing mechanisms for foreign companies to engage meaningfully with labor unions to prevent industrial unrest.

Samsung, for its part, has initiated discussions with its workers in an effort to resolve the strike. A company statement on Friday indicated that it was committed to addressing workers’ concerns and finding a solution as quickly as possible.

The Samsung strike could have far-reaching consequences for both the electronics sector and India’s ambitions to become a global manufacturing hub. As CITU continues to expand its influence, more strikes could follow, forcing companies and the government to confront the challenges of labor relations in a rapidly changing economy.

(Adapted from ThePrint.in)