Samsung Sues Indian Union Over Strike that Disrupted Output

The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. REUTERS/Yves Herman
The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. REUTERS/Yves Herman
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Samsung Sues Indian Union Over Strike that Disrupted Output

The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. REUTERS/Yves Herman
The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. REUTERS/Yves Herman

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 to be heard on Thursday.

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.

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".



Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
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Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo

Volkswagen workers will go on warning strikes on Monday at plants across Germany, labor union IG Metall said, marking the first large-scale walkouts at Volkswagen's domestic operations since 2018.

The start of the strikes represents a further escalation of a dispute between Europe's top carmaker and its workers over mass layoffs, pay cuts and possible plant closures - drastic measures the company says it cannot rule out in the face of Chinese competition and cooling consumer demand.

Labor representatives at VW had on Nov. 22 voted for limited strikes at German operations from early December after talks over wages and plant closures failed to achieve a breakthrough, Reuters reported.

"If necessary, this will be the toughest collective bargaining battle Volkswagen has ever seen," IG Metall negotiator Thorsten Groeger said in a statement.

The carmaker said it continues to rely on constructive dialogue to find a sustainable solution.

"Volkswagen respects the right of employees to take part in a warning strike," a spokesperson said in reply to the union's announcement, adding that the company had taken steps in advance to ensure a basic level of supplies to customers and minimise the impact of the strike.

Warning strikes in Germany usually last from a few hours.

The union had last week proposed measures it said would save 1.5 billion euros ($1.6 billion), including forgoing bonuses for 2025 and 2026, which Europe's top carmaker dismissed.

Volkswagen has demanded a 10% wage cut, arguing it needs to slash costs and boost profit to defend market share in the face of cheap competition from China and a drop in European car demand.

The company is threatening to close plants in Germany for the first time in its 87-year history.

"Volkswagen has set fire to our collective agreements and instead of extinguishing this fire in three collective bargaining sessions, the management board is throwing open barrels of petrol into it," Groeger said.

An agreement not to stage walkouts had ended on Saturday, IG Metall said, enabling workers to carry out warning strikes from Sunday across VW AG's German plants.

"Warning strikes will start at all plants from Monday. How long and how intensive this confrontation needs to be is Volkswagen's responsibility at the negotiating table," Groeger said.

Labor representatives and management will meet again on Dec. 9 to carry on negotiations over a new labor agreement for workers at the German business - VW AG - with unions vowing to resist any proposals that do not provide a long-term plan for every VW plant.