Shares of Samsung Electronics dropped by as much as 3% on Friday as the strike by workers at its southern Indian plant continued, disrupting production at the consumer electronics unit for the fifth consecutive day.
Discussions between the workers’ union representatives, Samsung’s management, and state labor officials failed to reach a resolution on Thursday regarding issues such as pay and working conditions.
Since Monday, hundreds of workers have been on strike, demanding that Samsung acknowledge their union, raise wages, and cut working hours. This strike is noted as one of the largest in recent years in India, according to Reuters.
The Chennai-based plant in southern India manufactures electronic appliances including televisions, refrigerators, and washing machines. It is one of Samsung’s two factories in India and can account for up to 30% of the company’s $12 billion annual revenue in the country, as reported by Reuters.
Samsung Electronics is a key player in India’s smartphone and electronic appliances market, with the major appliances sector in India expected to generate $38.2 billion in revenue in 2024, according to Statista.
The workers will maintain their strike until their demands for improved wages and working conditions are addressed, union leader E.Muthukumar told Reuters. “Samsung management has requested that we end the strike, but they have declined to recognize the union or participate in discussions, so the strike will continue.”
According to local newspaper Business Standards, approximately 85% of the 1,700 workers at the plant are participating in the strike.
A Samsung spokesperson stated earlier this week that the company “actively engages with our employees to resolve any issues and adheres to all relevant laws and regulations. We are committed to ensuring that there is no impact on our consumers.”
This strike at Samsung India follows recent wage protests in South Korea, where 36,500 members of its largest workers’ union went on strike in July and August, demanding higher wages and better benefits.
Shares of Samsung Electronics listed on South Korea’s stock exchange have fallen by over 6% this week, according to LSEG data.