Samsung India Reaches Agreement With Workers To Resolve Strike, Improve Working Conditions: Report

Samsung India has signed a Memorandum of Agreement (MoA) with a section of its workforce in a significant move to resolve the ongoing strike that began on 9 September 2024, as per a media report.

Under the terms of the MoA, Samsung has pledged to implement several measures designed to improve the welfare of its employees. A key feature of the agreement is the introduction of a Productivity Stabilisation Incentive of Rs 5,000 per month, effective from October 2024 through March 2025. This special incentive will be considered during the upcoming wage negotiations for the fiscal year 2025-26. To facilitate ongoing discussions, the company will maintain regular consultations with a workers' committee.

Additionally, Samsung plans to expand the operation of air-conditioned buses from the current five routes to all 108 routes by next year, aiming to enhance employee transportation options. The company is also increasing its engagement with workers' families by raising the number of family invitation events from four to six per year, with participants receiving a Rs 2,000 gift for attending.

In a gesture of support, Samsung has committed to providing Rs 1 lakh in immediate assistance to the family of any employee who passes away while in service, ensuring that their urgent needs are addressed. The agreement also includes improvements to health and wellness facilities, such as opening a new medical room, diversifying the cafeteria menu, increasing meal allowances, upgrading break rooms and restrooms, and replacing old lockers, mentioned the report.

In terms of leave policies, Samsung is set to introduce three days of marriage leave for employees and extend paternity leave for the birth of the first two children from three to five days. Further changes regarding vacation days will be made in consultation with the workers' committee. Employees will also receive a Rs 2,000 gift card to celebrate the birth of a child.