CHENNAI, India — Police on Monday detained 104 striking workers protesting low wages at a Samsung Electronics plant in southern India as they were planning a protest march without permission, with the dispute disrupting output at the key factory for the past week.

The detention marks an escalation of a strike by workers at a Samsung home appliance plant near Chennai in the state of Tamil Nadu. Workers want higher wages and have stopped work at the plant that contributes roughly a third of Samsung’s annual India revenue of $12 billion.

The Samsung protests have cast a shadow on Indian Prime Minister Narendra Modi’s plan of courting foreign investors to “Make in India” and his goal of tripling electronics production to $500 billion within six years.

Lured by cheap labor, foreign companies are increasingly using India for manufacturing to diversify their supply chain beyond China.

On Monday, the workers planned to start a protest march, but were detained as no permission was given since there are schools, colleges and hospitals in that area, said senior police officer of the Kancheepuram district K. Shanmugam.

“It is the main area which would become totally paralyzed and [the protest would] disturb public peace,” he said.

“We have detained them in wedding halls as all of them can’t be in stations,” he said.

Samsung workers since last week have been protesting at a makeshift tent near the plant, demanding higher wages, recognition for a union backed by influential labor group the Centre of Indian Trade Unions (CITU), and better working hours.

Samsung is not keen to recognize any union backed by a national labor group such as the CITU, and talks with workers, as well as state government officials, have not yielded resolution.

The CITU Tamil Nadu Deputy General Secretary, S. Kannan, condemned the police action, saying “This is an archaic move by the state government.”

Despite Monday’s police action, 12 union groups, including one affiliated with the ruling party of Tamil Nadu, said in a public notice dated Sept. 11 that they will stage a protest in support of the striking workers in Chennai on Wednesday, a move that could intensify the tensions between the company and the workers.

“We are going ahead with Wednesday’s protest … no changes to the plan,” said A. Jenitan, a deputy district secretary for the CITU.

The protests add to Samsung’s challenges in India, a key growth market.

The South Korean company is planning job cuts of up to 30% of its overseas staff in some divisions, including in India. And India’s antitrust body has found Samsung and other smartphone companies colluded with e-commerce giants to launch devices exclusively, violating competition laws, Reuters has reported.

Samsung did not respond to a request for comment on Monday, but on Friday said it has initiated discussions with workers at the Chennai plant “to resolve all issues at the earliest.”

Video footage from Reuters partner ANI showed dozens of Samsung workers wearing the company uniform of blue shirts being transported in a bus to a hall.

The Samsung plant employs roughly 1,800 workers and more than 1,000 of them have been on strike. The factory makes appliances such as refrigerators, TVs and washing machines. Another Samsung plant that makes smartphones in the northern state of Uttar Pradesh has had no unrest.

The police also detained one of CITU’s senior leaders, E. Muthukumar, who was leading the Samsung protests at the factory near Chennai, according to the CITU’s Jenitan.

Kancheepuram police official Shanmugam said there was no timeline as to how long the workers will be detained.
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Законопроєкт передбачає підвищення військового збору з 1,5% до 5%
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Washington — The Federal Reserve is gearing up to announce its first interest rate cut for more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the U.S. presidential election.   

Senior officials at the U.S. central bank including Fed chair Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool.   

The Fed, which has a dual mandate from Congress to act independently to ensure both stable prices and maximum sustainable employment, has repeatedly stressed it will make its decision on rate cuts based solely on the economic data.  

But a cut on Wednesday could still cause headaches for Powell, as it would land shortly before the election, in which former Republican president Donald Trump is running against the current Democratic vice president, Kamala Harris. 

“As much as I think the Fed tries to say that they’re not a political animal, we are in a really wild cycle right now,” Alicia Modestino, an associate professor of economics at Northeastern University, told AFP.   

How big a cut? 

The debate among policymakers on Tuesday and Wednesday this week will likely center on whether to move by 25 or 50 basis points.   

However, a rate cut of any size would be the Fed’s first since March 2020, when it slashed rates to near-zero in order to support the US economy through the Covid-19 pandemic.  

The Fed started hiking rates in 2022 in response to a surge in inflation, fueled largely by a post-pandemic supply crunch and the war in Ukraine.   

It has held its key lending rate at a two-decade high of between 5.25 and 5.50 percent for the past 14 months, waiting for economic conditions to improve.   

Now, with inflation falling, the labor market cooling, and the US economy still growing, policymakers have decided that conditions are ripe for a cut.   

Policymakers are left with a choice: making a small 25 basis point cut to ease into things, or a more aggressive cut of 50 basis points, which would be helpful for the labor market but could also risk reigniting inflation.   

“I think that in advance of the November meeting, there’s not quite enough data to say we’re in jeopardy on the employment side,” said Modestino, who was previously a senior economist at the Federal Reserve Bank of Boston.    

Analysts see the smaller cut as a safe bet.   

“We expect the Fed to cut by 25bp [basis points],” economists at Bank of America wrote in a recent note to clients.   

“The Fed likes predictability,” Modestino from Northeastern said. “It’s good for markets, good for consumers, good for workers.”   

“So a 25 basis point cut now, followed up by another 25 basis point cut in November after the next round of economic data, offers a somewhat smoother glide path for the economy,” she added.    

How many cuts?  

While analysts overwhelmingly expect the Fed to start cutting in September, there is less clarity about what comes next.   

Economists at some banks, including Goldman Sachs, expect cuts totaling 75 basis points over the last three meetings of the year, while others see more aggressive cuts, like economists at Citi, who have 125 basis points of easing as their base case.   

“The continued softening of the labor market is likely to provoke larger-sized cuts if not at this FOMC meeting then in November and December,” the Citi economists wrote in a recent note to clients, referring to the rate-setting Federal Open Market Committee (FOMC).   

The Fed will shed some light on the issue on Wednesday, when it publishes the updated economic forecasts of its 19-member FOMC — including their rate cut expectations.  

In June, FOMC members sharply reduced the number of cuts they had penciled in for this year from a median of three down to just one amid a small uptick in inflation.     

But as inflation has fallen and the labor market has weakened, expectations of more cuts have grown.  

Traders also see a greater-than 99 percent chance of at least four more cuts in 2025, which would bring the Fed’s key lending rate down to between 3.5 and 3.75 percent — 175 basis points below current levels. 
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OTTAWA, Ontario — Air Canada and the union representing its pilots have come to terms on a labor agreement that is likely to prevent a shutdown of Canada’s largest airline. 

Talks between the company and the Air Line Pilots Association produced a tentative, four-year collective agreement, the airline announced in a statement early Sunday. 

The prospective deal recognizes the contributions of the pilots flying for Air Canada and Air Canada Rouge while setting a new framework for company growth. The terms will remain confidential until ratification by union members and approval by the airline’s board of directors over the next month, the airline said. 

The pilots’ association said its Air Canada Master Executive Council voted to approve the tentative agreement on behalf of more than 5,400 Air Canada pilots. After review and ratification by a majority of members, the deal is expected to generate an additional $1.9 billion for the pilots over the period of the agreement, the union said in a statement. 

“While it has been an exceptionally long road to this agreement, the consistent engagement and unified determination of our pilots have been the catalyst for achieving this contract,” Charlene Hudy, the executive council’s chair, said in the statement. “After several consecutive weeks of intense round-the-clock negotiations, progress was made on several key issues including compensation, retirement, and work rules.” 

Federal Labor Minister Steven MacKinnon confirmed the agreement Sunday and lauded the company and the union. 

“Thanks to the hard work of the parties and federal mediators, disruptions have been prevented for Canadians,” MacKinnon said in a statement. “Negotiated agreements are always the best way forward and yield positive results for companies and workers.” 

The airline and its pilots have been in contract talks for more than a year. The pilots have sought wages competitive with their U.S. counterparts, but Air Canada continues to post record profits while expecting pilots to accept below-market compensation, the union said. 

The two sides could have issued a 72-hour notice of a strike or lockout beginning Sunday. The airline said the notice would have triggered its three-day wind down plan and started the clock on a full work stoppage as soon as Sept. 18. 

Air Canada spokesperson Christophe Hennebelle previously said the airline was committed to negotiations but faced union wage demands that the company could not meet. 

The airline was not seeking federal intervention, but cautioned the government should be prepared to help avoid major disruptions from the possible shutdown of an airline carrying more than 110,000 passengers daily, Hennebelle said. 

Business leaders had urged the federal government to intervene in the talks earlier in the week, but MacKinnon said there was no reason the sides should not have been able to reach a collective agreement. 

In August, the Canadian government asked the country’s industrial relations board to issue a back-to-work order to end a railway shutdown. 

Leaders of numerous business groups including the Canadian Chamber of Commerce and the Business Council of Canada convened in Ottawa on Thursday to call for action, including binding arbitration, to avoid the widespread economic disruptions of an airline shutdown. 

NDP Leader Jagmeet Singh said Thursday his party would not support efforts to force pilots back to work. 

“If there’s any bills being proposed on back to work legislation, we’re going to oppose that,” he said. 
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BEIJING — China’s economy softened in August, extending a slowdown in industrial activity and real estate prices as Beijing faces pressure to ramp up spending to stimulate demand.

Data published by the National Bureau of Statistics Saturday showed weakening activity across industrial production, retail sales and real estate this month compared to July.

“We should be aware that the adverse impacts arising from the changes in the external environment are increasing,” said Liu Aihua, the bureau’s chief economist in a news conference.

Liu said that demand remained insufficient at home, and the sustained economic recovery still confronts multiple difficulties and challenges.

China has been grappling with a lagging economy post-COVID, with weak consumer demand, persistent deflationary pressures and a contraction in factory activity.

Chinese leaders have ramped up investment in manufacturing to rev up an economy that stalled during the pandemic and is still growing slower than hoped.

Beijing also has to deal with increasing pressure to implement large-scale stimulus measures to boost economic growth.

While industrial production rose by 4.5% in August compared to a year ago, it declined from July’s 5.1% growth, according to the bureau’s data released.

Retail sales grew 2.1% from the same time last year, slower than the 2.7% increase last month.

Fixed asset investment rose by 3.4% from January to August, down from 3.6% in the first seven months.

Meanwhile, investment in real estate declined by 10.2% from January to August, compared to last year.

The figures released Saturday come after trade data for August saw imports grow just 0.5% compared to a year ago.

The consumer price index rose 0.6% in August, missing forecasts according to data released Monday. Officials attributed the higher CPI to an increase in food prices due to bad weather.

But the core CPI, which excludes food and energy prices, rose by just 0.3% in August, the slowest in over three years.
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