Workers of Samsung in India will continue to strike at the company’s plant at Sriperumbudur near Chennai demanding better wages, affecting production ahead of the festive season. The strike comes amid murmurs of a global layoff that could affect workers of the consumer electronics major in India.

Workers at Samsung Electronics’ southern India plant on Wednesday said that they will remain on strike until their demands for better wages are met. There are 1,750 workers at the plant.

There has been an over 50 per cent drop in production during the strike at the plant, which makes products such as televisions, refrigerators and washing machines and contributes between 20 per cent and 30 per cent to the company’s annual revenue of around $12 billion in India — a key growth market for the company. Samsung’s other plant at Noida makes mobile phones.

“The strike will continue as the management is silent on our demands,” Citu member E. Muthukumar told The Telegraph. The strike comes ahead of the festive season when consumers make purchases and companies offer discounts to boost sales.

Citu national secretary Sudip Dutta, who had recently visited the striking workers in Tamil Nadu, said that there is a significant wage gap between the company’s workers in Seoul and those in India. “The company has posted record profits but there is still a significant gap when it comes to wages of the employees in India and that in Seoul. The demand of the workers is therefore — the right to form union, the right to collective bargaining and increase the wages,” Dutta said.

During the second quarter of 2024 (April-June), Samsung had posted a consolidated net profit of 9.84 trillion KRW (South Korean Won) against 1.72 trillion KRW in the second quarter of 2023. Consolidated revenue during the quarter was at 74.07 trillion KRW, 23 per cent up from 60.01 trillion KRW in the second quarter of 2023.

A Reuters report meanwhile said that Samsung has instructed subsidiaries worldwide to reduce sales and marketing staff by about 15 per cent and the administrative staff by up to 30 per cent. The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa.

The total employees who may need to leave the India unit could reach 1,000, the Reuters report said adding that Samsung employs some 25,000 people in India.

“If the management is looking to get rid of permanent workers in India, there would be resistance,” said Dutta.

Samsung has yet to respond to a query that was sent on Wednesday.

“At Samsung India, the welfare of our employees is our top priority. We actively engage with our workers to address any grievances they may have and comply with all laws and regulations. We will also ensure that there is no disruption to our consumers,” a Samsung India spokesperson had said, according to PTI.