Samsung-union talks come to end, workers to get Rs 18K wage revision in Tamil Nadu
CHENNAI: The talks between Samsung India and members of the CITU-backed Samsung India Workers' Union (SIWU) finally ended on Monday, after both parties agreed to a wage revision of Rs 18,000 over a period of three years in direct salaries and an additional Rs 4,000 in experience-based incentives for workers at the Samsung India manufacturing unit at Sriperumbudur.
The talks were held in the presence of Labour Minister C V Ganesan at the secretariat on Monday. Following the talks, the minister told reporters that workers will receive a wage hike of Rs 9,000 in 2025-26, followed by a hike of Rs 4,500 each in 2026-27 and in 2027-28.
The two parties have also agreed upon a one-time special promotion to workers who have completed six years of continuous service as on March 31 this year and have not received promotions so far.
The standoff ended after nearly 30 rounds of talks between Samsung representatives, the union and labour department officials, failed. The union had initially sought Rs 36,000 in wage revision over a three-year-period.
SIWU president E Muthukumar told TNIE that against their demand of Rs 36,000 in wage revisions, Samsung had initially agreed to only Rs 9,000 in increased wages.
'From there, workers will now get Rs 18,000 in direct salaries and another Rs 4,000 in incentives. Apart from this, the management has also enhanced benefits, including insurance coverage from Rs 2.5 to Rs 3 lakh, and has increased leave for various purposes,' he said.
Samsung sources told TNIE that while the offer of revised wages up to Rs 9,000 was made in October last year, they had already revised the offer to Rs 18,000 as part of their negotiations with the management-backed workers' committee early this year. Sources said the terms agreed to on Monday, were already part of the offer made to the committee.
A spokesperson for Samsung India said, 'At Samsung, employee welfare remains a top priority. We have constructively engaged with all our workers at the Chennai plant and are delighted to announce a mutual agreement to enhance wages and benefits for the next three years. This collaborative approach reflects our commitment to the well-being of our workers and fostering a stable, harmonious, and forward-looking work environment.'
'We thank the TN CM, labour and employment minister, and industries minister for their continued support, and remain committed to building a positive and productive workplace in the region,' the spokesperson added.
As for the union's demand of revoking disciplinary action against 25 workers, Minister Ganesan told reporters, 'The talks were related to wage revisions which were successfully completed today. The labour department will continue its efforts to ensure the 25 suspended workers are back to work.'
In a statement, Industries Minister T R B Rajaa said, 'I am thankful to the workforce and the management of Samsung for trusting the system and engaging in constructive dialogue.'
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