Samsung India reaches wage agreement with workers at Sriperumbudur plant

A mediation meeting was held on Monday in the presence of Tamil Nadu’s labour minister CV Ganesan

The stand-off between workers of Samsung’s Sriperumbudur plant and the company has ended after a mediation meeting was held on Monday in the presence of Tamil Nadu’s labour minister CV Ganesan.

Samsung has offered a revised long-term wage and welfare agreement which the majority of workers have agreed to. As per a government release, under the agreement, the workers will receive a wage hike of ₹9,000 in 2025-26, and this hike will be ₹4,500 each in 2026-27 and in 2027-28, a total of ₹18,000 for three years.

Further, based on the experience levels, a special wage increase ranging between ₹1,000 and ₹4,000 across three years, will also be provided. Further, for those completed six years and not got promoted as of March 31, 2025, will also be eligible for a promotion. The agreement also talks about leave benefits, service recognition awards and transportation by AC buses.

Suspended staff

Disciplinary action against 25 suspended employees who violated labour laws and company regulations due to illegal activities is under way in accordance with due process, sources said. Revoking their suspension was one of the main demands of the union.

The wage agreement was receiving pushback from 300-400 odd workers belonging to CITU, which is backing the newly registered Samsung India union. However, after the mediation meeting on Monday, they have also agreed to the new agreement, sources said.

A Samsung India spokesperson said: “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. 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 also thanked the Chief Minister of Tamil Nadu, the Minister for Labour and Employment, and the Minister for Industries for their support.

Industries Minister TRB Rajaa said in a social media post that after sustained dialogue and responsible discussions from all sides, differences pertaining to the Samsung unit have been settled amicably.

The Samsung plant in Sriperumbudur manufactures washing machine, air conditioners, and other consumer tech.

Published on May 19, 2025

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