CHENNAI, Sept 19 (Askume) – Samsung Electronics’ Indian unit has sued the company’s leader in southern Tamil Nadu , legal documents show .
The suit, filed by Samsung (005930.KS) on Sept. 12 and first reported by Askume, asks a state district court to issue an interim injunction restraining the union and its members from carrying out agitations, sloganeering and speeches in Chennai and other nearby factories and surroundings.
Hundreds of Samsung workers have been disrupting work and protesting in makeshift tents nearby since Sept. 9. They have demanded higher wages and recognition of factory unions. The factory contributes about one-third of Samsung’s $12 billion annual revenue in India.
Samsung’s protest has cast a shadow over Prime Minister Narendra Modi’s “Make in India” plan to lure foreign investors and triple electronics output to $500 billion within six years.
Samsung’s unpublished 14-page court filing said the union’s actions “could disrupt factory operations and prevent employees from voluntarily performing their duties.”
Samsung said such activities “could escalate, endangering the smooth operation of factories and the safety of employees.”
During a hearing in the Kancheepuram district court on Thursday, Samsung lawyers said union members were preventing workers from voluntarily reporting to work. They said disputes should be resolved through direct arbitration with workers.
The union’s lawyers said the management was not agreeing to the workers’ demands. Judge A. Saravanakumar asked the workers and Samsung management to reach a solution as soon as possible.
Samsung did not respond to a request for comment. Last week, the company told Askume in a statement that it had begun discussions with factory workers “to resolve all issues as soon as possible.”
The labour unrest is one of the biggest strikes in India in recent years .
In the suit, Samsung sued top officials of the Centre of Indian Trade Unions (CITU), an influential labor group that organizes the company’s workers. Samsung is in no hurry to recognize any unions backed by national labor organizations, and negotiations with workers and government officials have yielded no resolution.
Indian police briefly detained more than 100 protesting activists as they planned to march without permission on Monday.
This strike has further increased the challenges facing Samsung in India.
SAMSUNGIt plans to lay off 30% of its overseas staff in some divisions, including in India . According to Askume, India’s antitrust agency found that Samsung and other smartphone companies colluded with e-commerce giants to launch exclusive devices that violated competition laws .
There are about 1,800 workers at the Samsung factories and more than 1,000 of them are on strike. The factory produces appliances such as refrigerators, televisions and washing machines. There were no riots at Samsung’s other smartphone manufacturing plant in northern Uttar Pradesh state.
Samsung workers, who earn an average of 25,000 rupees ($300) a month, are demanding a wage hike of 36,000 rupees ($430) over three years, CITU said.
