A strike at a Samsung plant in India has brought attention to a strong labour group, which is now planning to expand its influence in the electronics sector. The strike, which is in its fifth day, has disrupted production and shines a spotlight on the Centre of Indian Trade Unions (CITU), a group with strong political backing.
Disruptions Amid Modi’s “Make in India” Plan
The protests are about low wages and are affecting Indian Prime Minister Narendra Modi’s “Make in India” initiative, which aims to boost electronics production. The strike could complicate Modi’s goal of attracting more foreign investment and increasing production to $500 billion in six years.
CITU’s Growing Influence
Hundreds of workers in Tamil Nadu, wearing Samsung shirts and red CITU caps, have been protesting at the plant. CITU, backed by a major left-wing political party, has 6.6 million members and has traditionally focused on the auto sector. Now, they are trying to influence the electronics sector as well.
Impact and Future Plans
Strikes like this are rare in India’s electronics industry. CITU is also targeting other companies like Flex and Sanmina for better wages and union recognition. Flex claims to follow high global labour standards.
Current Situation
The Samsung strike is one of the largest disruptions at a foreign company in India. The Tamil Nadu Chief Minister M.K. Stalin is currently in the U.S. on a business tour, meeting companies like Nike and Ford.
CITU had earlier requested higher wages in a letter to Samsung but did not receive a response. The workers are asking for their pay to be raised from 25,000 rupees ($300) a month to 36,000 rupees ($430) over three years. Samsung has started talks with workers to resolve the issues.
Expert Opinions
Economist K.R. Shyam Sundar suggests that strikes could be reduced if the government ensures multinationals respect labour laws and support collective bargaining.
Samsung has stated it is working to resolve the issues with its workers as quickly as possible.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.