In a significant development in the continuing strike at Samsung Electronics' Sriperumbudur plant, the business signed a memorandum of understanding (MoU) with representatives of its employees, except the Centre of Indian Trade Unions (Citu), the union leading the demonstrations.

As part of the arrangement, Samsung promised to provide a special incentive of Rs 5,000 to its staff for a few months. This incentive is in addition to numerous other initiatives designed to improve working conditions. According to the MoU, the corporation would offer a productivity stabilisation incentive of Rs 5,000 per month, beginning October 2024 and ending March 2025.

During salary talks with employees, this particular incentive will be considered for the yearly wage increase in 2025-26. "On Monday, Samsung India inked a memorandum of arrangement with the workmen's committee of its Chennai facility.

Both parties agreed to work together to improve the Chennai factory's working conditions. We will communicate directly with workers to address the issues they are experiencing. As a responsible company, we would also collaborate with them to help strengthen the Chennai community," the company stated.

The development came after Industries Minister TRB Rajaa, Micro, Small, and Medium Enterprises (MSME) Minister T.M. Anbarasan, and Labour Minister CV Ganesan met with various stakeholders for over six hours on Monday at the secretariat.

"We are aware of the Tamil Nadu government's attempts to resolve the illegal strike and grateful to the authorities for their ongoing support. We emphasize that we follow all applicable laws and regulations in the country," the corporation noted.

As part of the MoU, the business promised to expand air-conditioned bus service from the existing five routes to all 108 by next year. In the terrible event of an employee's death, Samsung would provide the family with immediate relief of Rs 100,000.

The company also decided to establish the MD's People First Promise project and set up a route for workers to provide feedback in order to enhance working conditions even further. On September 9, over 1,300 workers went on strike at Samsung Electronics' Sriperumbudur plant on the outskirts of Chennai. They requested more pay, union recognition, and improved amenities, among other things.