Suffered $100 million loss due to workers’ strike, Samsung tells Madras High Court

Samsung India Electronics Private Limited (SIEPL) on Tuesday (October 22, 2024) claimed it had suffered a loss to the tune of around $100 million due to the recent strike by a section of employees, who wanted their trade union — Samsung India Thozhilalar Sangam, affiliated with the Centre of Indian Trade Unions (CITU) — to be registered.

Samsung India Electronics Private Limited (SIEPL) on Tuesday (October 22, 2024) claimed it had suffered a loss to the tune of around $100 million due to the recent strike by a section of employees, who wanted their trade union — Samsung India Thozhilalar Sangam, affiliated with the Centre of Indian Trade Unions (CITU) — to be registered.

Appearing before Justice R.N. Manjula, who was seized of a writ petition filed by P. Ellan, general secretary of the new trade union, senior counsel G. Rajagopalan, representing SIEPL, contended that trade unions could not be allowed to use the word ‘Samsung’ in their name since their activities would affect the company’s reputation.

On the other hand, advocate N.G.R. Prasad, representing the writ petitioner, contended it was not a trademark dispute for the company to raise objections over the use of its name by a trade union. He said SIEPL was not a necessary party to the writ petition and hence, its impleading petition must be dismissed.

Mr. Prasad also told the court that Samsung was a South Korea-based multinational manufacturing conglomerate and that even over there, its trade unions had been using the word ‘Samsung’ in their names. He argued the present writ petition was only between the trade union and the Registrar of Trade Unions.

However, Mr. Rajagopalan said SIEPL must necessarily be impleaded as a respondent to the writ petition, seeking a direction to the Registrar to register the trade union, and permitted to file a detailed counter-affidavit explaining as to why trade unions could not use the word ‘Samsung’ in their names.

After hearing both sides, the judge allowed the impleading application filed by SIEPL and granted it time till November 11 to file its counter-affidavit to the writ petition. She observed that the company must be given an opportunity to make its submissions to the plea for registering the trade union.