A group of more than 1,000 striking workers at the Samsung Electronics facility in southern India rejected the company's salary rise settlement offer, as the sit-in protest entered its second month on Wednesday.

The strike is India's largest labor conflict in recent years, casting a pall over Prime Minister Narendra Modi's efforts to entice investors to establish local manufacturing. So far, Tamil Nadu, which is home to several international industries, including Foxconn, has been unable to resolve the issue.

The factory is essential to Samsung's goals, accounting for nearly one-fifth of its $12 billion India revenue in 2022-23.

According to a settlement deal obtained by Reuters, Samsung proposed last week to pay a monthly incentive of 5,000 rupees ($60) until March, more air-conditioned buses, a diverse cafeteria menu, and a $24 gift card in the event of a child delivery.

However, the Centre of Indian Trade Unions (CITU), which is spearheading the demonstrations, has rejected the accord since it does not recognize their union, A. Soundararajan, its state president, stated on Wednesday.

"We will continue to strike. "We will step up our protest to put pressure on the government," he told Reuters.

Samsung claimed in a statement that it signed an agreement and will work with employees to solve their issues, but it did not comment on whether the walkout is still ongoing.

State Industries Minister T.R.B. Rajaa stated on Tuesday that Samsung had agreed to meet 14 requests and was open to talking more, but that "workers should return to work" and that all of their demands, including union registration, would be addressed.

According to the CITU, Samsung employees earn an average of 25,000 rupees ($300) per month and are asking for a raise of 36,000 rupees per month over three years. Samsung claims that the average monthly income of full-time manufacturing workers at the factory is roughly double that of comparable workers in the region.

The facility, which employs over 1,800 permanent people and produces refrigerators, televisions, and washing machines, is one of Samsung's two facilities in India. The other, in Uttar Pradesh, manufactures smartphones but has had no worker unrest.