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Business News/ Companies / Foxconn offers severance package to Chennai plant workers
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Foxconn offers severance package to Chennai plant workers

Foxconn says employees cannot be offered jobs so the management has decided to give them salaries along with paid holidays

File photo. Foxconn had earlier announced that it would suspend operations from 24 December at its plant in Sriperumbudur due to a steep fall in orders in the wake of Nokia shutting facility in Sriperumbudur. Photo: ReutersPremium
File photo. Foxconn had earlier announced that it would suspend operations from 24 December at its plant in Sriperumbudur due to a steep fall in orders in the wake of Nokia shutting facility in Sriperumbudur. Photo: Reuters

Sriperumbudur: As the stand-off between employees and Taiwan-based Foxconn continued over suspension of production at its plant in Sriperumbudur, the management has notified that it would offer severance package or VRS to workers.

For the second successive day, protesting employees tried to force their way into the factory, but the posse of policemen who stood guard took about 300 of them into custody as a preventive measure. The police said detained employees, lodged in a marriage hall, have been released.

Foxconn had earlier announced that it would suspend operations from 24 December at its plant in Sriperumbudur due to a steep fall in orders in the wake of Nokia shutting facility in Sriperumbudur.

The workers’ union, however, claimed that the management announced holiday on Monday and Tuesday, thus advancing the suspension by two days even as tripartite talks are going on to reach at an amicable solution. According to the union, over 1,700 employees would be impacted by the suspension.

Meanwhile, in a notice to employees, a copy of which was circulated to labour department, Sriperumbudur, Foxconn said, “In order to reach for an amicable solution, it is now informed that the company has decided to offer VRS or severance package."

As there is a situation that employees cannot be offered jobs, the management has decided to give them salaries along with paid holidays, it said. “The company appeals to the employees not to come to the factory until further orders. Employees are requested to cooperate in these difficult times and maintain peace till a settlement is reached", the company said.

Foxconn India employees union president, E. Muthu Kumar said the tripartite talks scheduled for 26 December will be held at labour commissioner office as announced earlier.

“We want jobs. We do not want the plant to be closed like Nokia’s facility", he added. The Foxconn management refused to accede to the employees union demand for opening the factory on Tuesday, even after labour authorities tried to persuade them.

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Published: 23 Dec 2014, 10:00 PM IST
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