Samsung sues Indian union over strike that disrupted output

CHENNAI: Samsung Electronics’ Indian unit has sued members of a labour union that has led a strike for 11 days at its only India home appliances plant in the southern state of Tamil Nadu, escalating tensions with its workers, legal papers show.

Samsung’s lawsuit dated Sept. 12, which Reuters is first to report, asks a district court in the state for a temporary injunction to restrain the union and its members from agitating, sloganeering and making speeches in and around the factory located near Chennai.

Lawyers were gathered in a court, near Chennai, in Kancheepuram district, where the case was expected to be heard on Thursday.

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Hundreds of Samsung workers have since Sept. 9 disrupted work and protested in a nearby makeshift tent, demanding higher wages and recognition of a union at the plant that contributes roughly a third of Samsung’s annual India revenue of $12 billion.

The Samsung protests have cast a shadow over Indian Prime Minister Narendra Modi’s plan to court foreign investors to “Make in India” and tripling electronics production to $500 billion in six years.

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Samsung’s 14-page court filing, which is not public, said the union’s actions “could disrupt the factory’s operations and prevent willing employees from fulfilling their duties”.

Such activities “are likely to escalate, endangering the smooth functioning of the factory and the safety of its employees,” Samsung said.

Samsung did not respond to a request for comment. Last week, it told Reuters in a statement it had initiated discussions with workers at the plant “to resolve all issues at the earliest”.