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Over 1,000 workers are striking since Sept. 9

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Samsung proposes wage raise, other benefits

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Government asks strikers to return to work

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Strikers reject proposal, seek union recognition

By Praveen Paramasivam

CHENNAI, Oct 9 (Reuters) - A group of more than 1,000

striking workers at the Samsung Electronics ( SSNLF ) factory

in southern India has rejected a settlement offer made by the

company on wage hikes, with the sit-in protest entering its

second month on Wednesday.

The strike is the biggest such labour dispute in recent

years in India and has cast a shadow over Prime Minister

Narendra Modi's drive to lure investors to set up local

manufacturing. Tamil Nadu state, where many foreign companies

including Foxconn operate, has been unsuccessful in resolving

the matter so far.

The strikers have disrupted production and protested in a

makeshift tent close to the factory near the city of Chennai in

Tamil Nadu since Sept. 9, demanding higher wages and union

recognition. The plant is critical to Samsung's ambitions and

accounted for roughly one-fifth of its $12 billion India sales

in 2022-23.

Samsung this week made a proposal to provide a monthly

incentive of 5,000 rupees ($60) until March, more air

conditioned buses, a diversified cafeteria menu and a gift card

of $24 in case of a child birth, according to the settlement

document seen by Reuters.

But the labour group backing the protests, the Centre of

Indian Trade Unions (CITU), has rejected the agreement as it

doesn't recognise their union, A. Soundararajan, its state

president said on Wednesday.

"We will continue striking. We will intensify our protest to

put pressure on the government," he told Reuters.

Samsung said in a statement it signed an agreement and will

engage with workers to address their concerns, but it did not

comment on the strike still continuing.

State industries minister T.R.B. Rajaa said on Tuesday

Samsung had agreed to fulfil 14 demands and was willing to

discuss more, but the "workers should return to work" and all

their demands, including union recognition, will be considered.

Samsung workers earn 25,000 rupees ($300) on average each

month and are demanding a raise of 36,000 rupees a month spread

over three years, according to the CITU. Samsung has said the

average monthly salary of full-time manufacturing workers at the

plant is nearly double that of similar workers in the region.

The plant, which employs roughly 1,800 permanent workers and

makes refrigerators, TVs and washing machines, is one of

Samsung's two factories in India. The other one in Uttar Pradesh

state makes smartphones, but has witnessed no labour unrest.