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Samsung India strike one of biggest recent industrial

clashes

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Employees boycott work, demand better salaries

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Samsung leadership has travelled to resolve the matter

(Adds union comment in paragraph 3,4; production impact)

By Praveen Paramasivam

SRIPERUMBUDUR, India, Sept 11 (Reuters) -

Workers at Samsung Electronics' ( SSNLF ) southern India

plant will remain on strike until their demands for better wages

and working conditions are met, union leaders said, as output at

the consumer appliances unit was disrupted for a third straight

day.

The industrial unrest at the plant in Sriperumbudur,

near the city of Chennai, is one of the biggest such strikes in

recent years in India.

The plant, which makes products such as televisions,

refrigerators and washing machines, contributes between 20% and

30% of Samsung's annual $12 billion revenue in India, a key

growth market for the company.

"The strike will continue until a settlement is reached,

with the next round of talks (planned) on Friday evening," union

leader E. Muthukumar told Reuters.

"As things stand, the strike will continue till Friday."

The Samsung factory is next to units of other global giants

such as Foxconn and Dell in an area popular for

automobile and electronics manufacturing.

On the first day of the strike on Monday, 50% of daily

production was disrupted, while 30% was hit on Tuesday as some

temperary workers have been roped in to keep production going,

said a source with direct knowledge of the matter.

The workers want Samsung to recognise their union, as well

as increase their wages and improve their working hours. Samsung

Southwest Asia CEO, JB Park, and other senior executives have

travelled to the factory to try to resolve the protests.

"They (Samsung) will soon have to talk to us, just like they

had to engage with the Korean union there," Muthukumar said.

In July and August, the 36,500 members of Samsung

Electronics' ( SSNLF ) biggest worker union in South Korea demanded higher

wages and benefits, striking for several days, but there was no

impact on production there.

South Korea-based Samsung, which is India's biggest consumer

electronics company, did not respond to a request for comment. A

spokesperson for Samsung India said on Monday that it actively

engaged with workers "to address any grievances they may have

and comply with all laws and regulations".

In India, the strike comes ahead of a critical festive

season when consumers step up purchases and companies dole out

discounts.

According to Samsung employees outside the factory, the

company has so far not agreed to recognise the union backed by

the local labour group, the Centre of Indian Trade Unions

(CITU).

Many workers wearing Samsung's blue uniform shirt, and

red CITU caps, were seen sitting inside a makeshift tent put up

near the factory, which employs roughly 1,800 people.

Meals were arranged by workers and being distributed on

Wednesday afternoon.

Earlier in the morning, employees chanted together

outside the factory: "We will stand together and secure a win."

There has been no labour unrest at Samsung's other

Indian plant in the northern state of Uttar Pradesh, which makes

smartphones.