Samsung signs pact with Chennai plant workers on wage revisions & welfare

Chennai: Samsung India on Monday signed a wage revision and welfare agreement with a section of its Chennai plant employees affiliated with the CITU union, bringing an year-long dispute to an end. According to the company spokesperson, it struck a mutual agreement to increase wages for the next three years and provide additional benefits.

“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 unwavering commitment to the well-being of our workers and fostering a stable, harmonious, and forward-looking work environment,” the company said in a statement.

The development comes after 31 rounds of talks between the management and the union since December 2024. The final round of conciliation headed by state labour minister CV Ganesan was held on Monday at the state secretariat.

The pact covers various welfare activities by the company including food, insurance, air conditioned transportation and leave among others. A note from the state labour department said workers will get a cumulative wage hike of Rs 18,000 over the next three years with Rs 9,000 in 2025-26 (FY26), and Rs 4,500 each in FY27 and FY28. One-time special promotion for employees who completed six years and a special salary hike are part of the deal.

Previously, CITU demanded revoking the suspension of employees as part of the talks. While these issues were discussed in the meeting, they are not covered in the agreement. Samsung is conducting an internal investigation and might take disciplinary action, according to people aware of the development.

“Happy to announce that after sustained dialogue and responsible discussions from all sides, all differences pertaining to the Samsung unit have been settled amicably,” state industries minister T R B Raaja said in a X post.

Samsung’s consumer durables manufacturing facility faced a series of protests and unrest from September 2024 demanding wage revision and better working conditions.