Shares of Samsung Electronics fell as much as 3% on Friday, as workers at its southern Indian plant continued to strike, disrupting production at the consumer electronics unit for a fifth day.
Worker union’s representatives, Samsung’s management and the state’s labor officials failed to reach an agreement over pay and working conditions among other things, on Thursday.
Hundreds of workers have been on strike since Monday, demanding the electronics conglomerate to recognize their union, raise wages and reduce working hours. It is one of the biggest such strikes in recent years in India, Reuters reported.
The plant, located in the city of Chennai in southern India, makes electronic appliances including televisions, refrigerators and washing machines.
It’s one of the two factories that Samsung runs in India and can account for up to 30% of the group’s $12 billion annual revenue in the country, Reuters reported.
Samsung Electronics is one of the leading players in India’s smartphone and electronic appliances market. The major appliances sector-wide 2024 revenue in India is pegged at $38.2 billion, according to Statista.
The workers will continue to strike until their demands for better wages and working conditions are met, union leader E. Muthukumar told Reuters, “Samsung management asked us to stop striking but wouldn’t recognize the union or talk to us, so the strike continues.”
Around 85% of the 1,700 workers at the plant were part of the strike, local newspaper Business Standards reported on Tuesday.
A Samsung spokesperson said in a statement earlier this week that the company “actively engages with our workers to address any grievances they may have and comply with all laws and regulations. We will also ensure that there is no disruption to our consumers.”
The strike in Samsung India follows recent wage protests in South Korea where 36,500 members from its biggest workers’ union went on strike in July and August, calling for higher wages and better benefits.
Shares of Samsung Electronics listed in South Korea’s stock exchange have dropped over 6% so far this week, LSEG data showed.