Samsung Warns Workers Of Pay Cut and Termination, But Employees To Continue Protests

Samsung has issued a show cause notice to protesting employees, warning them of wage cuts and termination, and insisting that they return to work immediately. 

The company in the notice says that as per Sections 23 & 24 of Industrial Disputes Act, stopping work is illegal, and striking employees are in violation of company rules too. Samsung is also promising that no action will be taken if employees return to work promptly. 

The threat of a wage cut is being made, quoting Section 9 of the Payment of Wages Act, where, 8 days' salary may be deducted on the 'No Work No Pay' principle. Employees are asked to respond to this show cause notice within 3 days of receipt, with an explanation as to why 8 days' salary must not be deducted.

If employees fail to return to work within 4 days of receipt of the notice, they will need to provide a written explanation as to why they must not be removed from their jobs. This explanation will be given within 7 days of receipt of the notice.

Employees, however, argue that the protest is not illegal and the company holds no legal grounds to dismiss protesting employees.

G Muthukumar, President, Samsung India Workers Union (affiliated to CITU) told NDTV Profit, “ We have given a reply to notice, the notice is invalid, and it is not an illegal strike. We are willing to end the strike but only if our issues are addressed satisfactorily. Both the company and the workers have to come to a mutual agreement.” 

He also noted that both Madras HC and Kanchipuram district court have refused to term the strike as illegal. “Only if it is an illegal strike can they cut pay. Since the courts have refused to call the strike illegal, there is no question of a pay cut. There is no law that says you can dismiss striking workers,” Muthukumar said. 

The union’s next protest will be on Sept. 24 near the Kanchipuram bus stand, he noted. Union is also accusing the government of not making an effort to reach out to the protesters and favouring the company instead.

If any employee is being prevented from returning to work, or if anyone is instigating employees, they may contact the Samsung helpline, the notice sent by the General Manager of the HR Team read. The company has also noted that it is willing to have an open dialogue and discuss all the issues with the workers. 

“We have informed our policy to our workers based on relevant laws and regulations, and urged them to return to work immediately. The safety and wellbeing of our workers are a priority. We remain committed to resolving this issue,” Samsung in its statement said. 

Further, company sources privy to the development say that the production impact on the first day of the strike was 50 percent, and now the impact is minimal. It has employed contract workers to keep the production running, and is confident of stabilising operations completely soon.

The company is willing to negotiate and find a solution with its own employees independently, but will not be talking to any employee unions, the sources noted.

Workers at Samsung’s facility near Chennai have been protesting near the factory since Sept. 9, demanding higher wages, reduced working hours and recognition of the union at the plant.