Samsung Gives Workers INR 5,000 Incentive under Newest Memorandum

On Monday, Samsung India announced it had signed a Memorandum of Agreement (MoA) with a section of its workers to address several demands amid an ongoing strike that began on September 9, 2024. This agreement marks a significant step toward resolving the dispute, as both parties aim to collaborate in "mitigating the difficulties faced by workmen."  Under the MoA, Samsung has committed to implementing various measures designed to enhance the working environment and welfare of its employees. One of the key provisions includes the introduction of a productivity stabilization incentive amounting to ₹5,000 per month, which will take effect from October 2024 and continue until March 2025.

The company stated that the specifics of this incentive will be finalized in consultation with a workmen committee, ensuring that employees have a say in the decision-making process. Furthermore, this incentive will be considered in the annual wage increment for the 2025-26 financial year during ongoing negotiations.

Samsung has also agreed to improve transportation facilities by expanding the operation of air-conditioned buses from the current five routes to cover all 108 routes by next year. Additionally, the company plans to increase the frequency of family invitation events from four to six times a year, where participating families will receive a gift valued at ₹2,000.

In a compassionate move, Samsung will provide immediate assistance of ₹1 lakh to the family of any employee who unfortunately passes away while in service. This initiative aims to help families manage their immediate needs during such difficult times.

Moreover, the agreement outlines several enhancements to the workplace, including the opening of a new medical room in the compressor building, diversifying the cafeteria menu, increasing meal allowances, upgrading break rooms and restrooms, replacing old lockers, and installing canopies between buildings. The company has also pledged to allow employees to take more vacation days and will offer a ₹2,000 gift card to workers upon the birth of a child.