In a recent Flagship Report, GTRI warned that Samsung Strike in Tamil Nadu risks repeating Nokia's Collapse a decade ago and called for prioritizing protection of worker’s rights while maintaining industrial stability.

• A combination of tax disputes with Tamil Nadu government and mounting union pressures crippled Nokia's (one of India’s most successful mobile phone manufacturers) operations, leading to the plant's closure in 2013.
• Reasons for the ongoing strikes by Samsung workers include demand for instant approval of proposal to form union, hike in wages, working time of 8-hours, among others.

Impact of these Strikes on Indian Economy

• On manufacturing ecosystem: Hamper the ambitions of India in electronics manufacturing and lead to shifting of the manufacturing dominance to China. e.g., Nokia closure in 2013 shifted mobile manufacturing dominance to China.
  • Instability due to strikes leads to losses for companies, supply-chain disruptions, and discourages investment by investors and MNCs.
• On Labour force: May result in wage losses during strike periods and potential job insecurities. 
• On Government: India is in the midst of reviewing its Free Trade Agreements (FTAs) with South Korea and ASEAN countries. Any escalation of the strike could negatively impact these negotiations.