Samsung India Electronics, a key player in the tech industry, has taken a significant step towards resolving the ongoing strike at its Chennai facility.
On October 7, 2024, the company signed a Memorandum of Agreement (MoA) with a section of workers, addressing their demands and aiming to improve the work environment.
Samsung India: Collaborative Efforts to Mitigate Workforce Challenges
The MoA reflects Samsung’s commitment to collaborating with its workforce to alleviate difficulties faced by employees.
Wage Enhancement and Incentives: Samsung will enhance wages by introducing an interim special incentive called the Productivity Stabilisation Incentive.
This incentive, equivalent to Rs 5,000 per month, will be effective from October 2024 until March 2025. The workmen committee will actively participate in finalizing the details of payment modalities.
Annual wage increments for 2025-26 will also consider this special incentive.
Improved Working Conditions: The company will expand the operation of air-conditioned buses, increasing the current five routes to cover all 108 routes.
This move aims to enhance employee comfort during commutes. Workmen family invitation events will become more frequent, with each participating family receiving a gift worth Rs 2,000.
In the unfortunate event of an employee’s death while in service, Samsung will provide immediate assistance of Rs 1 lakh to the family.
Health and Welfare Measures: A new medical room will be established in the compressor building. Cafeteria menus will diversify, and meal allowances will increase.
Break rooms and restrooms will undergo upgrades, and old lockers will be replaced. Canopies between buildings will provide shelter during inclement weather.
Family-Friendly Policies: Employees will receive a gift card of Rs 2,000 upon the birth of a child. A three-day marriage leave will be introduced.
Paternity leave for the birth of the first and second child will increase from three to five days.
Vacation Benefits: The company will enhance the number of vacations available to workmen, with details to be worked out in consultation with the workmen committee.
Conclusion
Samsung’s MoA with its workers marks a positive turning point. By addressing their demands and prioritizing their welfare, the company demonstrates its commitment to fostering a harmonious work environment.
As the Chennai facility moves forward, both parties can celebrate this win-win resolution.
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