 "Nokia India workers upset over Microsoft deal")
On Friday, April 25, 2014 Microsoft took over Nokia Corporation's devices and Services business across the globe, except the Indian and Korean facilities.
According to sources from the Nokia India Employees Union, the Nokia India management today informed the workers that the deal between Microsoft and Nokia Corporation is closed and the Indian facility would be working on contract basis for a limited period, without specifying any timeframe.
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The workers, who are in the average age of 25 years, are upset with the announcement, as the management informed them that even if the tax dispute is over, the facility could go under Microsoft only through a new deal between the two companies. Considering that the facility would go under service agreement, the job security for the workers would be under question.
"We are totally upset about the management stand. They told that there is no chance to transfer the facility to Microsoft and even if it has to be transferred it would require a new deal between the companies," said M Saravanakumar, president of the Union.
As reported earlier, to a question on whether there is any window open for the Chennai facility to come on board in future, if Nokia address all the disputes, Microsoft spokesperson responded saying “the deal has been completed”. Sources also said that, the facility will not be part of Microsoft anytime in the future also.
On April 25, Nokia has offered a financial assistance to its employees the chance to explore opportunities outside Nokia. Already the company has offered VRS to its workers in the factory, which will be live till May 15.
The Union has said that they will not accept VRS, while around 730 trainees have accepted the scheme and they said it is the responsibility of Nokia to keep the employees engaged and take care of their livelihood.
The workers have been demanding the central and state governments and the Nokia India management that their job should be protected and they should be transferred to Microsoft along with the facility. According to the union, there are around 8,000 direct and over 20,000 indirect employees working for the manufacturing facility.
The Chennai facility was freezed by the Income tax department, that has slashed a Rs 21,000 crore tax notice on Nokia. The Department refused to allow transfer of the plant till the dues claimed by the department are not remitted by the company. The matter is now at the Apex Court.
Nokia is also facing a similar dispute with Tamil Nadu Government's sales tax department, which issued a Rs 2,400 crore tax notice. The matter was argued at the Madras High Court last week and the Court has reserved its order for April 29.