Lost USD 100 million due to strike, claims Samsung

CHENNAI: The workers’ strike orchestrated by CITU, a politically inclined trade union, led to a revenue loss of USD 100 million, claimed Samsung India Electronics.

The company said this to Justice RN Manjula of the Madras High Court who was hearing a petition moved by P Ellan, general secretary, Samsung India Thozhilalar Sangam, seeking to direct the Labour Department to register the union.

Also Read: Samsung Electronics workers call off strike, says TN government

When senior counsel G Rajagopalan submitted an impleading petition on behalf of Samsung seeking to add it as a party in the case, senior counsel NGR Prasad, who represented the trade union, vehemently objected to it. He noted that the matter was before the Registrar of Trade Union/Joint Commissioner of Labour Department to register the trade union.

Now, the registrar has to scrutinise whether the union complied with all statutory requirements and pass order, he said, adding that the company had no role to implead in the petition.

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However, Samsung submitted that it incurred a huge revenue loss to the tune of USD 100 million because of the workers’ protest that lasted for more than 30 days. “The trade union is affiliated to CITU, which is a wing of the CPM. Hence we objected to registering the union,” he said. The company also apprehended the union using its trademark, Samsung, in the name.

Prasad pointed out that the trade union in Samsung’s headquarters in South Korea, too, had the company’s name, and that the Labour Department has registered hundreds of trade unions with the name of the employer company. Section 16 of the Trade Union Act allowed unions to take part in political activities, he added.

Also Read: Samsung strike: DMK-CPM dial down heat as TN govt initiates talks with CITU, management

But, the judge admitted Samsung’s petition and adjourned the main matter to November 11.