Samsung workers’ strike: What the company has offered to end protest

CHENNAI: In what Tamil Nadu Industries Minister TRB Rajaa termed as a major breakthrough, the Samsung Electronics management has agreed to the protesting workers’ demand for wage hike and other benefits.

The State government unofficially circulated a memorandum of agreement signed by Samsung India Electronics Pvt Ltd managing director Yoon Sung-hyun and workers to end the “illegal strike” and return to work.

The agreement states that workers would get Rs 5,000 per month incentive from October to March, assurance to extend AC buses on all 108 routes from the current five routes, and Rs 1 lakh immediate assistance if a worker dies.

Here are the measures that Samsung has agreed to implement to improve the working environment for the welfare of its workmen:

• The company shall, in consultation with the workmen committee, implement measures to enhance the competitiveness of wages.

• As an immediate measure and recognising the current financial situation, the company will provide an interim special incentive by the name of Productivity Stabilization Incentive equivalent to Rs 5,000 per month, effective from October up to March 2025. The modalities of the payment will be finalised in consultation with the workmen committee.

• This special incentive shall be considered with the annual increment in wages for the FY 2025-26, that will be finalised in consultation with the workmen committee during the wage negotiations.

• The operation of air-conditioned buses will be expanded by next year from only 5 routes currently to all 108 routes.

• The company will increase the number of workmen family invitation events in a year from four to six times a year. At each event, a gift worth around Rs 2,000 will be given to each family that participates at an event.

• In the unfortunate event of the death of an employee while in service, the company shall provide an additional immediate assistance of Rs 1,00,000 to the family to take care of their immediate needs.

• The company will open a new medical room in the compressor building.

• The company will diversify the cafeteria menu, as also increase meal allowances.

• The company shall upgrade break rooms and restrooms in the manufacturing building. Further, old lockers in the production line will be replaced.

• Recognising the need to walk between buildings, the company will install canopies between buildings.

• The company will enhance the number the vacations that can be availed by the workmen.

• Three days marriage leave will be introduced for employees.

• Paternity leave for the birth of the first and second child will be increased from three to five days.

• Further changes in the number of vacations will be done in consultation with the workmen committee.

• In case of the joyous occasion of birth of a child, the company will give a gift card of Rs 2,000 to the workman.

• The company will launch the "MD's People First Promise," which aims to continuously improve the working environment and infrastructure by listening to feedback from the workmen committee.

• The company will operate a channel for collecting workmens's voices (VoC) and actively improve it.

• The company and the workmen committee will identify additional matters apart from the clauses above, and discuss further improvements in the working conditions. Both parties will strive towards implementation of the measures to be undertaken in this regard in an expeditious manner.

The agreement was signed by Samsung Electronics managing director Yoon Sung-hyun representing the company, and Sathish, Ravichandran, Suresh, Senthil, Chitra, Vandivelan, Prakash representing the workers, claimed the document circulated by the government.