Preface:
Who would have thought that the "tough" stance of tech giant Samsung in India would become a joke?
Recently, the strike at the Samsung factory in India has ushered in a dramatic reversal, which makes people sigh: in this magical land, even multinational companies cannot escape the "India" surprise.
At first, Samsung proudly offered a layoff sword, vowing to deter those "restless" workers.
Who knows, this move not only failed to calm the turmoil, but instead triggered a larger wave of protests.
And when we take a closer look at this farce, the true intentions of the India government gradually emerge - it turns out that this is a simple labor dispute, and it is clearly a well-choreographed "Made in India" drama!
Let's lift the curtain on this farce and see how Samsung has gone from a "tough guy" to a "laughing stock" in the "magical" market of India.
Samsung India collective strike?
In the wave of globalization, the relationship between multinational corporations and emerging markets has always been a topic full of tension. The recent large-scale strike at the Samsung factory in India is typical of this topic.
Let's start with Samsung's position in India.
As a global electronics giant, Samsung has a significant presence in the India market.
According to Counterpoint Research, in the fourth quarter of 2023, Samsung's share of the India smartphone market reached 18%, second only to Xiaomi.
Behind this figure is Samsung's intensive cultivation in the India market for many years, and it is also the recognition of this Korean brand by India consumers.
However, the market share figures are only superficial. Looking deeper, we will find that Samsung's presence in India is actually an important step in a larger strategic chess game. The designer of this chess game is none other than India's Prime Minister Narendra · Modi.
Since coming to power in 2014, Modi has been pushing for the 'Make in India initiative.
This ambitious plan aims to establish India as a global manufacturing hub, attract foreign investment and enhance India's manufacturing capabilities.
In this grand blueprint, Samsung is undoubtedly an important chess piece. As a Fortune 500 company, Samsung's participation adds weight and international reach to the "Make in India" initiative.
But, as history has proven countless times, economic policymakers often underestimate the complexity of reality. In India, Samsung's challenges are far more intractable than the Modi government anticipated.
At the beginning of 2024, the Samsung factory in India staged an "employee counterattack".
The workers put forward the "three axes": pay increases, time reductions, and hereditary ones. This can catch the company's senior management off guard.
Looking at these three axes, people can't help but call "too ruthless". Speaking of wage increases, workers will soar their monthly wages from 25,000 rupees (about 2,094 yuan) to 61,000 rupees (about 5,129 yuan). What a salary increase, it's just playing the game of "doubling wealth"!
In terms of working hours, they are required to work only 35 hours per week.
This requires a global view to be "revolutionary". I'm afraid that even the employees of the welfare states in Northern Europe will give a thumbs up when they hear it. When the bosses saw it, they tightened their wallets one after another, shouting "This is an employee, it's an ancestor"!
However, if we look deeper into India's social structure and cultural background, we will find that behind these seemingly outrageous demands, there are actually deep problems in India society.
What is the reason for the strike?
India's caste system, the "master of social stratification", although legally invited to tea, is like an uninvited old stubborn, still waving an "invisible magic wand" in India society.
This system is like a giant "life script distribution machine". As soon as every Indian is born, he has already sent a script, and then he does not forget to remind: "Just act according to it, don't think about changing roles".
In this case, being able to mix a position in a multinational company like Samsung is simply a "workplace lottery" for many India workers.
They want to guarantee this opportunity to future generations through a hereditary system, which reflects their anxiety about the future and their appreciation for existing jobs.
From this point of view, the demands of India workers are not as simple as "asking for money" on the surface, but want a deeper level of security.
They want to improve their lives through high wages, gain more personal time through short working hours, and ensure the long-term stability of their families through the hereditary system.
To some extent, these requirements can be seen as a kind of resistance to the uncertainties brought about by modernization.
In the face of workers' demands, Samsung's response can be said to be typical of multinational companies.
How did Samsung deal with it?
The company has taken a tough stance and plans to lay off workers in two phases, possibly up to 9,000 jobs.
There is nothing wrong with this approach in terms of business logic – after all, as a profit-seeking company, Samsung could not have accepted such aggressive wage increases and shorter working hours. Not to mention the hereditary system of positions, which is completely contrary to the requirements of modern enterprise management concepts.
Samsung has also taken legal action against members of the India Trade Union Center, asking the court to restrict the union's activities inside and outside the factory.
The move shows Samsung's wariness of the India labor movement and reflects the plight of multinational companies when facing local labor problems.
The strike caused huge losses for Samsung, affecting production plans and market supply.
In today's highly integrated global supply chains, the shutdown of one factory can affect the entire industrial chain. For Samsung, this not only means direct economic losses, but may also affect its long-term layout in the India market.
The attitude of the India government in this conflict is also worth paying attention to. Tamil Nadu police have arrested 104 employees involved in the strike for carrying out strikes without permission.
This action shows the local government's support for foreign-owned enterprises, but it also raises concerns about the protection of labor rights.
The conflict has highlighted the challenges faced by multinational corporations operating in India and has also raised questions about India's labor rights and economic development model. It may affect the decision-making of foreign investors in the future and even affect India's positioning in the global industrial chain.
Globalization vs. localization
Looking back at the whole event, we can see the wrestling between globalization and localization. Samsung represents the power of globalization, bringing advanced technology, management experience, and employment opportunities. But at the same time, it also faces the challenge of adapting to the local culture and social structure.
The demands of India workers represent the power of indigenization, and they want to enjoy the benefits of modernisation while preserving traditional social structures and values.
Don't think that only India is staging this "globalization vs localization" drama. To be honest, this kind of "cultural collision" has been staged all over the world, and it is simply a "repertoire" in the process of globalization. However, the India drama is particularly wonderful and can be called a "divine drama" level.
For Samsung, this incident is undoubtedly a cautionary tale. It reminds us that, in the process of globalization, economic power and technological superiority alone are not enough.
If you want to establish yourself in this magical land, you can't simply copy and paste the "survival guide" from the headquarters.
First of all, you have to learn to interpret the local culture with "India thinking", otherwise you will step on the "cultural landmine" every minute. Second, juggling between the interests of the company and the demands of employees is more balancing than walking a tightrope.
Finally, you have to play hopscotch between local laws and international labor standards, and if you are not careful, you can offend both ends.
For the India government, while welcoming foreign investment with open arms, it must protect the "money bags" of its own workers; not only wants to rush forward to catch up with the last train of economic development, but also can't let social justice sit on the cold bench; It is necessary to catch up with the modern express train while guarding the traditional culture. These questions are like brain-burning "India-style" math problems that have scratched the scalps of India policymakers.
For us observers, this event provides a rare window into the complex dynamics of globalization. It reminds us that economic development is not just about digital growth, but also a complex process that involves multiple levels such as culture, society, and politics.
Epilogue:
The wave of spheroidization is surging, but the roots of the local culture are equally deep.
Samsung's encounter in India is like a modern version of the "Clash of Eastern and Western Civilizations" sketch, which is both comical and thought-provoking.
This farce tells us that if you want to dominate the "magical" market of India, I am afraid that even the tech giants will have to be planted.
In the future, similar "cultural collisions" may intensify and become a "reserved program" in the process of globalization. How to maintain local characteristics in the tide of globalization? How to chase GDP without forgetting social equity? I am afraid that these problems will keep many CEOs of multinational companies awake at night.
The source comes from Sina Finance: Samsung India employees went on strike, putting forward three outrageous demands!
The source comes from China Economic Network: More than 100 India workers have been arrested, and the Samsung factory strike has cast a shadow over "Made in India".