Samsung workers in India end strike after pay deal
The strike marked the conglomerate's latest outbreak of employee discontent
Workers stage a protest to demand higher wages and recognition of their union, at Samsung India's plant in Sriperumbudur, near Chennai on September 11, 2024. (Photo by R.SATISH BABU/AFP via Getty Images)
Pramod Thomas is a senior correspondent with Asian Media Group since 2020, bringing 19 years of journalism experience across business, politics, sports, communities, and international relations. His career spans both traditional and digital media platforms, with eight years specifically focused on digital journalism. This blend of experience positions him well to navigate the evolving media landscape and deliver content across various formats. He has worked with national and international media organisations, giving him a broad perspective on global news trends and reporting standards.
SAMSUNG ELECTRONICS workers in southern India have ended a month-long strike over pay and working conditions after "welfare measures" were agreed, the state industry minister said.
Samsung "announced several welfare measures in the interest of the workers", Tamil Nadu state minister T.R.B Rajaa said in a statement.
"The strike at the Samsung factory has come to an end, and all the workers are resuming work."
A spokesperson for Samsung India welcomed the decision to end the work stoppage, saying: "We will not take action against workers who merely participated in the illegal strike.
"We are committed to work closely with our workers to make the Chennai factory a great place to work."
India is the world's most populous country and its growing middle class is an important growth market for Samsung, a company whose output accounts for nearly a quarter of South Korea's GDP.
The consumer tech giant had promised the industrial action, which began on September 9, would not impact consumers.
Hundreds of Samsung employees took part in the strike at a plant outside the southern city of Chennai that employs around 1,800 workers to build televisions, refrigerators and other consumer goods.
The strike marked the conglomerate's latest outbreak of employee discontent, with thousands of unionised workers striking in South Korea in July over pay and benefits.
India has pitched itself as an emerging manufacturing hub to tech giants seeking to diversify production away from China, owing to geopolitical tensions with the United States and other economic challenges.
Google this year began manufacturing its flagship Pixel 8 smartphone in India while Taiwanese electronics giant Foxconn, a principal assembler of Apple iPhones, is establishing a major phone assembly plant near the southern tech hub Bengaluru.
Samsung already operates what was billed on its opening as the world's largest mobile phone factory on the outskirts of New Delhi, with a capacity of about 120 million units per year.
UK life sciences sector contributed £17.6bn GVA in 2021 and supports 126,000 high-skilled jobs.
Inward life sciences FDI fell by 58 per cent from £1,897m in 2021 to £795m in 2023.
Experts warn NHS underinvestment and NICE pricing rules are deterring innovation and patient access.
Investment gap
Britain is seeking to attract new pharmaceutical investment as part of its plan to strengthen the life sciences sector, Chancellor Rachel Reeves said during meetings in Washington this week. “We do need to make sure that we are an attractive place for pharmaceuticals, and that includes on pricing, but in return for that, we want to see more investment flow to Britain,” Reeves told reporters.
Recent ABPI report, ‘Creating the conditions for investment and growth’, The UK’s pharmaceutical industry is integral to both the country’s health and growth missions, contributing £17.6 billion in direct gross value added (GVA) annually and supporting 126,000 high-skilled jobs across the nation. It also invests more in research and development (R&D) than any other sector. Yet inward life sciences foreign direct investment (FDI) fell by 58per cent, from £1,897 million in 2021 to £795 million in 2023, while pharmaceutical R&D investment in the UK lagged behind global growth trends, costing an estimated £1.3 billion in lost investment in 2023 alone.
Richard Torbett, ABPI Chief Executive, noted “The UK can lead globally in medicines and vaccines, unlocking billions in R&D investment and improving patient access but only if barriers are removed and innovation rewarded.”
The UK invests just 9% of healthcare spending in medicines, compared with 17% in Spain, and only 37% of new medicines are made fully available for their licensed indications, compared to 90% in Germany.
Expert reviews
Shailesh Solanki, executive editor of Pharmacy Business, pointed that “The government’s own review shows the sector is underfunded by about £2 billion per year. To make transformation a reality, this gap must be closed with clear plans for investment in people, premises and technology.”
The National Institute for Health and Care Excellence (NICE) cost-effectiveness threshold £20,000 to £30,000 per Quality-Adjusted Life Year (QALY) — has remained unchanged for over two decades, delaying or deterring new medicine launches. Raising it is viewed as vital to attracting foreign investment, expanding patient access, and maintaining the UK’s global standing in life sciences.
Guy Oliver, General Manager for Bristol Myers Squibb UK and Ireland, noted that " the current VPAG rate is leaving UK patients behind other countries, forcing cuts to NHS partnerships, clinical trials, and workforce despite government growth ambitions".
Reeves’ push for reform, supported by the ABPI’s Competitiveness Framework, underlines Britain’s intent to stay a leading hub for pharmaceutical innovation while ensuring NHS patients will gain faster access to new treatments.
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