October 06, 2024
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TN: Samsung Workers’ Indefinite Strike

S Kannan

A THOUSAND years ago, during the reign of Chola King Rajaraja, vast tracts of land, known as Brahmadeyam, were granted to brahmins. Successive kings followed this tradition, generously donating land to key administrative service providers, such as the army and palace staff. The ruling class of that era favoured a select few – primarily those close to them – elevating them to the status of landlords. In contrast, the workers who toiled on the land to produce food were largely ignored and received no such grants.

In today’s neoliberal era, a similar pattern is emerging, but with a modern twist. Now, it’s under the guise of Special Economic Zones (SEZs), State Industries Promotion Corporations (SIPCOTs), and other such initiatives. Not only are land and resources being handed over to a select few, but they are also granted to foreign entities and corporations at incredibly cheap rates, often through long-term leases or even outright ownership.

This process is termed "industrialisation." In its wake, agricultural land, pastoral land, and water reserves are sacrificed. Along with this, infrastructure – such as roads, airports, and shipping cargo facilities – is developed, costing governments thousands of crores of rupees. To fund these developments, governments take loans from global financial institutions like the International Monetary Fund (IMF) and the World Bank. These loans come with conditionalities that are detrimental to people’s welfare.

In the SEZs there is a clear lack of labour rights. In many states, labour unions are not allowed to form within SEZ areas, and the basic rights of workers are frequently violated.

CITU'S STRUGGLE

In Tamil Nadu, the Centre of Indian Trade Unions (CITU) has taken up the fight against these injustices in SEZs, particularly in the Kanchipuram district. Despite the restrictive regulations within SEZs, CITU has successfully forced the labour department to intervene in workers' issues over the past 15 years. Their struggle has not only boosted workers' confidence but also that of the democratic forces in the region.

However, this progress has come at a significant cost. CITU leaders, like E Muthukumar, the district secretary, have faced numerous arrests. Over 200 workers have been dismissed, and hundreds more have been suspended, often facing wage cuts.

Despite the aggressive actions of multinational corporations (MNCs) on one side, there has been a strong reaction from the working class on the other, following the principle that every action has an equal and opposite reaction. The response from workers has been sustained and organised.

In Kanchipuram district alone, the CITU has established unions in 63 industries, with a membership of 10,245 workers. While this number is not as large as the total workforce in these factories, it marks a significant start in organising workers. Beyond Kanchipuram, unions affiliated with CITU are also active in more than 25 industries in Chengalpattu and Tiruvallur.

CITU has often been publicly criticised as being unreasonable, adamant, and even accused of pushing workers toward the closure of industries. However, these anti-CITU campaigns were discredited through the union’s actual work and campaigns on the ground.

CITU has successfully negotiated and registered 12(3) agreements with management in around 30 industries, showcasing its strong bargaining power. In some cases, CITU has even signed long-term settlements (LTS) more than two or three times within certain industries.

Major industries where CITU has secured LTS agreements include BMW India Ltd, Yamaha Motor India, Apollo Tyres, JK Tyres, Thai Summit Auto Parts, Valeo Lights India Ltd, and Caparo India Pvt Ltd. Through these agreements, over 1,000 workers have gained permanent employment status. At Thai Summit Auto Parts alone, CITU succeeded in securing permanent status for 492 workers. In other industries, CITU continues to take disputes to the labour office.

FORMATION OF THE CITU UNION IN SAMSUNG

The experiences from earlier union formations were echoed when the CITU union was established at Samsung. In May 2024, workers from Samsung approached CITU, expressing their interest in forming a union and affiliating with CITU. Prior to this, employees at Flex, a neighbouring company, had successfully formed a CITU union in 2023, which also influenced the Samsung workers.

On June 16, 2024, Samsung workers held a general body meeting, with over 1,000 employees in attendance. By June 26, all necessary documents and registration papers were submitted online to the Registrar of Trade Unions in Chennai, under the Joint Commissioner of Labour. The following day, June 27, the union sent an official letter to Samsung management, informing them of the union’s formation and its resolution to affiliate with CITU.

At the Samsung factory, there are 1,810 workers on the payroll (including 40 female workers) in blue-collar roles. Out of these, 1,450 workers had already subscribed to the union by the time the management was notified.

When Samsung management received the letter about the formation of the union, they began harassing employees in an effort to dissolve it. Their tactics were varied and persistent:

First, management told workers, “We are one family; there’s no need for outsiders like a union.” Second, they proposed, “We can form a workers' committee within the company, similar to what some Korean factories do, without needing a union.” Third, they threatened, “If you don’t agree to these suggestions, management will take strong action against the union office bearers.” Fourth, they warned, “If you continue with your union demands, production will stop. Don’t forget that wherever the CITU union is formed in MNCs, it leads to factory closures.” Finally, they offered, “Whatever the reasons for forming a union, management will address everything.”

These efforts of the management failed. When none of their strategies worked, they escalated their tactics. They began isolating certain employees, forcing them to sit alone in the workplace while others looked on, creating an atmosphere of guilt and shame. This psychological pressure became a strong tool of harassment.

CHARTER OF DEMANDS

A month after forming the union, CITU submitted a charter of demands to Samsung management on July 17, 2024. However, the harassment of workers continued. In response, the union decided to register a dispute 2K under the Industrial Disputes Act of 1947.

When the dispute reached the conciliation stage, even the conciliation officer advised the formation of a workers' committee rather than supporting the union’s demands. The labour department, on one hand, delayed the union’s registration without providing any valid justification. On the other hand, they openly sided with management. This behaviour clearly reflected the government's intent to protect corporate interests, as authorities believed that allowing unionisation at Samsung could deter other large investors from coming to India.

At one point, labour department officials informed the union that Samsung had challenged the name "Samsung Workers Union" and suggested the union change its name – an absurd request, considering the department had previously registered unions with the company's name for CITU and other affiliates.

Faced with such blatant collusion between the government and management, the union had no choice but to strike, starting on September 9, 2024.

SAMSUNG’S CONTROVERSIES

Samsung, meaning "three stars," was founded by Lee Byung-chull with the vision of building a strong, large, and everlasting company. However, despite its lofty ideals, Samsung has consistently failed to uphold basic labour laws throughout its history and has been embroiled in numerous controversies. A vice president was convicted in a high-profile bribery case. Samsung faced global punishments for child labour violations, with children under the age of 16 found working in their supply chain. Another vice president was jailed for 16 months for attempting to sabotage a labor union.

Samsung’s vast industrial empire extends beyond home appliances and cell phones into semiconductor manufacturing, giving the company significant influence over governments. For example, at its Noida plant, no union has been able to form due to the company’s efforts to maintain a "union-free" environment. Samsung’s desire to retain its monopolistic dominance in the electronics manufacturing industry relies heavily on keeping its operations union-free.

This approach is backed by neoliberal policies and a government that prioritizes pro-capital and investor-friendly measures, helping conglomerates grow while simultaneously crushing workers' rights.

Samsung's continued attempts to deny workers their rights will not go unchallenged. Unionised workers will not allow their rights to be eroded any further. The ongoing strike is sharpening the conflict between capital and labour, and in the end, it is the striking workers who will win.