Strike led to loss of $100 million: Samsung informs Madras HC
The workers of Samsung India, who had been agitating against the management, called off their 37-day-long strike on October 15. The strike, which commenced on September 9, was called off after multiple rounds of talks
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Chennai: Samsung India Electronics Private Ltd (SIEPL) informed the Madras High Court that the company lost around $100 million due to the recent strike by a section of employees led by the CPI(M)-affiliated Centre of Indian Trade Unions (CITU).
SIEPL, represented by its advocate G. Rajagopalan, told the court that trade union registration should not be allowed within SIEPL. SIEPL was responding to a petition filed by P. Ellan, General Secretary of the Samsung India Thozhilalar Sangam, affiliated with CITU. Advocate Rajagopalan argued that the name ‘Samsung’ could not be used by trade unions, and hence union activities could not be permitted within the company.
However, Advocate N.G.R. Prasad, representing Ellan, countered that Samsung is a Korea-based multinational conglomerate and that even in South Korea, trade unions are using the name ‘Samsung.’ He further stated that this was not a trademark dispute for SIEPL to object to and added that Samsung was not a party to the writ petition. Therefore, he argued, the petition should be dismissed. Prasad also informed the court that the writ petition was solely between the trade union and the Registrar of Trade Unions and that Samsung had no direct role in this matter.
Advocate Rajagopalan, representing SIEPL, requested that the company be impleaded as a respondent in the writ petition. He also sought time to file a detailed counter affidavit. Justice Manjula of the Madras High Court granted SIEPL time until November 11 to file its counter affidavit. It is worth recalling that the workers of Samsung India, who had been agitating against the management, called off their 37-day-long strike on October 15. The strike, which commenced on September 9, was called off after multiple rounds of talks at the Tamil Nadu Secretariat, involving the state government, CITU leaders, and Samsung India management.
According to company sources, the agreement included a wage hike (previously agreed upon) and a commitment that no disciplinary action would be taken against the agitating employees. However, the main issue raised by CITU regarding the registration of its union was not included in the agreement. A consensus was reached that the union’s registration would be pursued based on the legal outcome. CITU agreed to call off the strike after the Tamil Nadu government expressed its support for registering.
