According to the Indian Energy Network: The strike operation of the Samsung factory workers in India has entered the second month.
Outside the local Samsung factory in India, the shouts of the strike workers came one after another, and the production of the factory was almost stagnant, but the door of the factory was still closed.
Samsung’s response attitude is tough: no salary during the strike, reject any salary increase requirement.
With the increasingly fierce global market competition, will the demands of workers be resolved?What impact will this strike bring to India’s manufacturing?
The root cause of strike: the survival pressure of workers
As a world -renowned electronic manufacturing giant, Samsung’s business in India has long been deeply rooted in the hearts of people, but workers are not satisfied with Samsung.
Because the monthly salary of 30,000 to 35,000 rupees (about RMB 3,000) income, it cannot support their daily life at all.The expensive costs of rising prices, high rent, and children’s education costs are also overwhelmed by the burden of life.
What is even more unacceptable to workers is that Samsung looks indifferent and decided on the problem of family resettlement after the death of workers.
In this regard, workers proposed that if the existing employees died of accident, their families should have the right to replace their work to ensure the livelihood of the family.
Behind this appeal is the unpopular sense of the Indian workers in the future.
Obviously, workers hope that in this way, the financial source of the family is not interrupted.
At the same time, workers also hope that Samsung recognizes the legitimacy of the union and believes that the trade union can better help them fight for their rights.But Samsung decisively rejected this request, thinking that the intervention of the union will only disrupt the company’s management order.
Faced with a number of demands such as salary increase, post inheritance, and union recognition made by workers, Samsung’s response was even more ruthless.Simla Stock
The company directly stated that no salary was paid during the strike.This is undoubtedly the biggest threat to workers, trying to force them to resume work as soon as possible through economic pressure.
For many families who rely on this income to maintain their livelihood, the suspension of salary will bring huge life difficulties.
Samsung’s move undoubtedly caused greater anger among workers, and the situation of strike was further upgraded.
Workers must not only face the tough attitude of the enterprise, but also maintain their livelihood in a worse economic environment, and ride a tiger.For Samsung, it also shattered his teeth and swallowed his belly.
After all, the longer the strike duration, the greater the loss of production.Lucknow Investment
In the first week of strikes, the output of the Kimner Factory has fallen significantly. In addition, for a global company, the suspension of the Indian factory not only affects the local market, but also affects the global supply chain.
Samsung is obviously unwilling to see this situation continues to deteriorate.
Samsung’s strike also had a profound impact on India’s manufacturing industry.
As an important part of the "Indian Manufacturing" plan, the strike of the Samsung factory has made this ambitious national plan on a shadow, especially hindering the original plan of the Indian government-will create a $ 500 billion worth of US dollars in the next 6 years.Electronic products manufacturing industry.Chennai Investment
Labor disputes are often not limited to the enterprise.
Once Samsung’s workers have obtained more rights through strikes, this may trigger the follow -up of other factories, leading to the spread of strikes in India. Other multinational companies such as Apple may become the next object of being affected.
This is undoubtedly a huge challenge for the Indian manufacturing industry.The rise in labor costs will directly affect the investment confidence of foreign -funded enterprises, and may even lead to capital flee.
In the past 7 years, 2,783 foreign -funded enterprises have closed their business in India. Once this trend has intensified, the Indian economy will face severe tests.
The dilemma behind the workers: the conflict between the system and the reality
Behind the strike is the dilemma of the Indian workers.
Although India has a huge demographic dividend, the overall quality of the labor force is low, the gross enrollment rate of higher education is less than 30%, and the illiterate rate is still as high as 10%, and about 150 million people are illiterate.
The imbalance of this labor market has led to the long -term low level of wages.
Although workers working in the Samsung factory, although they are engaged in global electronic products, their income is still at a low level compared with workers in other countries.Psychological gaps are also one of the reasons for their decision to strike.
In their opinion, the labor paid is not proportional to the income compensation, especially in the context of globalization, the salary of Indian workers is particularly low.
In addition, India’s surname system has also exacerbated the inequality of the labor market to a certain extent.
The surname system limits the opportunity of the promotion of workers, leads to the solidification of the social classes, and further suppresss the rising channels of the workers.Hyderabad Investment
As the strike continues, the focus of the problem is that Samsung will compromise.
As a world -renowned electronic company, Samsung has a huge production and sales network globally.
In order to control the cost, Samsung has implemented different wages in different countries. Moreover, Samsung clearly states that India cannot compare the salary level of India with other countries, which means that Samsung does not intend to give workers more salary in India.
However, as the global market competition has intensified, Samsung has to face the problem of rising production costs.
If Indian workers successfully strive to get salaries, Samsung will inevitably consider transferring some production to countries with lower labor costs.
The Indian government has trapped in a dilemma in this incident: it is necessary to maintain the investment confidence of foreign companies and balance the interests of the working class.
Furthermore, India wants to see that companies around the world have reprimanded the poor investment environment of India, and India has a deeper dilemma behind India, such as the inequality of the "surname system".
If India cannot restrain itself, then this strike may be just the beginning of Indian manufacturing fading …
Simla Stock
