Samsung India and the CITU-backed Samsung India Workers’ Union (Siwu) on Monday announced an amicable settlement on wage-related issues, bringing an end to a nearly year-long workers protest at the company’s manufacturing facility in Chennai.
The resolution follows over 30 rounds of talks between the union and the management, in the presence of state government labour authorities, over several demands including wage revision and improved working conditions.
The negotiations, held in the presence of Tamil Nadu labour minister CV Ganesan on Monday, led to a three-year wage agreement covering the period from April 1, 2025, to March 31, 2028.
As per the pact, workers will receive a wage hike of ₹9,000 in FY26, followed by ₹4,500 each in FY27 and FY28—amounting to a total increase of ₹18,000 over three years. Additionally, based on experience, workers will get a special wage hike ranging from ₹1,000 to ₹4,000 over the three-year period. The agreement also includes a one-time promotion for workers who have completed six years of service as of May 31, 2025, but have not received any promotion so far. Other benefits include additional leave and incentives.
E Muthukumar, district secretary of CITU, Kancheepuram, who led the protests, said the union is satisfied with the outcome. “This is the result of nine months of protest by our workers,” he told FE.
The agreement marks the end of one of the longest labour disputes in recent times. In September 2024, nearly 1,000 workers affiliated with Siwu launched a 37-day strike demanding higher pay, better working conditions and formal recognition of Siwu, which was unrecognised at the time.
The strike was called off on October 16 after multiple rounds of negotiations involving state government officials and ministers, with workers returning to work the next day. However, unrest flared up again in early 2025 after several workers affiliated to the union were suspended for allegedly participating in the strike, prompting renewed protests. More than 20 workers were suspended during a month-long sit-in that lasted from February 5 to March 7.
“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,” a Samsung India spokesperson said.
Despite the prolonged labour unrest, the company last month announced plans to invest an additional ₹1,000 crore in its Sriperumbudur facility. The plant, which employs around 1,800 workers, manufactures televisions, washing machines and air conditioners and contributed nearly one-third to Samsung India’s $12 billion revenue in FY23. Samsung also operates a smartphone manufacturing unit in Noida.
“Happy to announce that after sustained dialogue and responsible discussions from all sides, all differences pertaining to the Samsung unit have been settled amicably,” Tamil Nadu industries minister TRB Rajaa said in a post on X.