A strike, and Tamil Nadu’s challenge Business News & Hub

CPI(M) leader Soundararajan meets Samsung employees protesting over various demands, in Chennai.
| Photo Credit: ANI

The ongoing workers’ strike at the manufacturing facility of Samsung, the South Korean electronics giant, in Sriperumbudur near Chennai, appears to have put the Chief Minister M.K. Stalin-led Dravida Munnetra Kazhagam (DMK) government in a spot.

The workers have been on strike since September 9, demanding higher wages and union recognition. The demand for recognition of the Centre of Indian Trade Unions (CITU)-affiliated Samsung India Workers’ Union (SIWU) has been the key friction point between the striking workers and the company’s management. CITU is affiliated to the Communist Party of India (Marxist), a DMK ally.

Last month, Union Labour Minister Mansukh Mandaviya wrote to Mr. Stalin, urging him to bring a “swift resolution” to the strike at Samsung. Mr. Stalin assigned Industries Minister T.R.B. Rajaa, Micro Small and Medium Enterprises Minister T.M. Anbarasan, and Labour Minister C.V. Ganesan to address the issue. In the presence of the ministers, several long meetings were held between the management and workers, and a “settlement” was reached between the company and the workmen committee on October 7.

However, CITU rejected the settlement proposal and said that the strike would continue until SIWU is recognised. The police arrested some of the protesting workers and dispersed the others. This move evoked strong criticism from the Opposition parties, such as the All India Anna Dravida Munnetra Kazhagam, Amma Makkal Munnettra Kazagam, Pattali Makkal Katchi, and Naam Tamilar Katchi. Even the DMK’s allies — the Tamil Nadu Congress Committee, the Marumalarchi Dravida Munnetra Kazhagam, Viduthalai Chiruthaigal Katchi, the CPI(M), and Tamizhaga Vazhvurimai Katchi — have backed the workers. Interestingly, some leaders of the Bharatiya Janata Party in Tamil Nadu have spoken against the CITU protest.

Industry bodies such as the Confederation of Indian Industry Tamil Nadu have said it is vital to reach a swift resolution to maintain the State’s industrial momentum and attract investors. The DMK-affiliated Labour Progressive Federation has asked CITU not to blow the issue out of proportion.

Mr. Rajaa and Finance Minister Thangam Thennarasu spoke to the media and argued that the issue of union recognition is sub judice and that the State government would take a decision based on the verdict of the Madras High Court. Mr. Rajaa said the management was also ready to fulfil the other demands of the workers, including high-quality food, standard locks, and air-conditioning of all the 108 buses. But they were unsuccessful in convincing the protesters to return to work.

Deputy Chief Minister Udhayanidhi Stalin told reporters that Samsung is a multinational company and has refused to recognise a politically backed union. All other demands of the workers have been fulfilled, he pointed out.

The protest has come at a time when the DMK government is projecting Tamil Nadu as a preferred investment destination. The government is said to have attracted investments amounting to ₹10 lakh crore and generating 31 lakh jobs in three years. The protest, in fact, began when Mr. Stalin was in midst of a visit to the U.S. visit to woo investment. He signed investment pacts to the tune of ₹7,600 crore with various companies during his visit. Ford agreed to resume production, nearly three years after it ceased vehicle production in India, in Tamil Nadu, which was seen as a major win for the DMK government. Tamil Nadu is India’s largest exporter of electronic goods.

States are competing for investments. India is trying to take advantage of ‘China Plus One’, a strategy where businesses are avoiding investing only in China and are seeking to diversify investments and supply chains to other countries. As Indian States are also facing the challenge of youth unemployment, they are trying to attract investments to generate jobs.

While attracting investments with the pitch that Tamil Nadu offers a peaceful industrial environment, the State government cannot afford to neglect the interests of workers. The government of the most industrialised State in the country, as per the Reserve Bank of India, faces a real challenge in balancing the demand of the workers to form a union and the need for industrial development.