Chennai: Taiwan-based electronics maker Foxconn’s Chennai factory will shut down on 10 February, after Nokia India, its sole client, shuttered its plant on 22 December.
E. Muthukumar, district secretary of the Centre of India Trade Unions (CITU) said the unions will meet the deputy labour commissioner on 11 February and continue their protests against the plant closure.
Seven rounds of talks have already taken place between Foxconn, workers and the labour department. Foxconn has offered a voluntary retirement scheme or severance package but only a dozen out of the 1,306 workers at its Sriperumbudur plant have opted for it, Muthuraman claimed.
The severance package involves two months’ salary for every year of service with a cap of 12 months, with a lump sum ₹ 50,000. The workers will also get a bonus of ₹ 8,300 and a service compensation of ₹ 2,000 for every five years, along with three months of notice period pay.
In September 2013, Microsoft Corp. acquired the Finnish handset maker Nokia but the Sriperumbudur facility did not form part of the global acquisition because of the ongoing ₹ 21,153 crore tax dispute between Indian tax authorities and Nokia. Due to liens on Nokia’s handset manufacturing facility, the site was left out of the devices and services deal with Microsoft which closed on 25 April 2014.
Microsoft informed Nokia that it will terminate the manufacturing services defined in the agreement with effect from 1 November 2014. In absence of further orders from Microsoft, Nokia suspended handset production at the Sriperumbudur facility in November.