Labour

Samsung Workers Clinch Victory in Wage Battle After Months-Long Struggle

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Neelambaran A

Published on May 22, 2025, 03:01 PM | 3 min read

Tamil Nadu –The sustained struggle of the workers of Samsung India Electronics Limited (SIEL) has resulted in a significant achievement, with the management agreeing to ensure fair wages, improved leave benefits, and higher medical insurance for employees. With this, the management's attempt to fix higher salaries for members of the pro-management union has been thwarted.


After months of protests and 30 rounds of negotiations, the management of SIEL agreed to a wage revision, medical insurance upgrades, and long-overdue promotions. The agreement was reached following tripartite talks involving SIEL management, SIWU representatives, and government officials, including the Minister for Labour Welfare.


Wage Hike and Promotions Secured


The workers will receive a wage increment of Rs. 18,000 spread across the next three financial years—Rs. 9,000 in 2025–26 and Rs. 4,500 each in the subsequent two years. Employees will also be eligible for annual increments ranging from Rs. 1,000 to Rs. 4,000, depending on their experience in the company.

Promotions for workers who completed six years of service as of March 31, 2025, which had been pending due to a standoff with management, will be processed immediately.

gate meeting samsung victory

(Image from the gate meeting following the successful conclusion of the talks)


Leave, Insurance, and Transport Facilities Improved


As part of the agreement, maternity and paternity leave entitlements have been increased, and leave allowances for bereavement have also been enhanced. Financial assistance for the death of family members has been raised from Rs. 5,000 to Rs. 1 lakh.


Accrued annual leave has been increased from 30 to 90 days. Workers will now have the option to encash leave exceeding the 90-day limit. Medical insurance coverage has been increased from Rs. 2.5 lakhs to Rs. 3 lakhs. To address transportation concerns, 109 new air-conditioned buses will replace the current fleet of 18, expanding commuting options for employees. Workers celebrated the agreement with a gate meeting at the Sriperumbudur plant, outlining the key outcomes of the settlement.


“This is a historic moment for us,” said E. Muthu Kumar, president of SIWU. “These benefits were never extended to workers before. It was only through a sustained and united struggle that we achieved this.”

Suspended Workers Await Resolution


Since the strike began on September 9, 2024, 25 workers—including union leaders—had been suspended on what the union describes as false charges. The management had also issued charge sheets, enforced transfers, and backed a rival union in an effort to divide the workforce.


“The management has now agreed to conclude the enquiry process related to the suspended workers,” said Muthu Kumar. “The Labour Welfare Department has also urged a resolution, and we are hopeful the charges will be withdrawn to fully restore normalcy.”


Despite several repressive measures from the management, lack of support from the state government and pro management position of the labour welfare and industries department, the workers of Samsung manufacturing unit have won a decisive battle, ensuring the rights of workers can be won through sustained struggles.






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