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After waiting for long for the support of the Tamil Nadu State government, the Union of Nokia workers in Sriperumbudur, near Chennai, has said that the state government is "totally insensitive" in what is happening in the electronic industry in Sriperumbudur and around.
The Union is now expecting some positive development if the Central government takes remedial action on the previous government's order on imposing taxes retrospectively, said A Soundararajan, a Member of Legislative Assembly and Honorary President of Nokia India Workers Union.
Speaking about the current situation in the Nokia facility near Chennai, he said, "We need at least the help of the Tamil Nadu Government. The State government is totally insensitive in what is happening in the electronic industry in Sriperumbudur and around, and thousands of people have moved out with money or without. This is a bad thing and it is going to be a social issue."
He added, "The government should not see it as a legal issue only. What the government can or cannot do is not the issue. The government should do something because it will be affecting the jobs." He added that given the current situation, the fate of the remaining around 860 workers who are working on finishing the pending assembly of one million sets now, in the facility, is also a matter concern.
"The management is conducting the Bridge programme and whatever possible for them, but nothing is moving," he said.
Before the Lok Sabha elections, the management has shared their hopes that if the government in the centre changes, there might be some ray of hope, he said. Considering that there are chances that the implementation of tax laws retrospectively as per the then Finance Minister Pranab Mukherjee's order would be reversed and the income tax case will go automatically, there are hopes. However, even after that, the future of the workers should be ensured,such as whether the Microsoft would take them as employees or would provide orders to the Chennai facility.
The Plant, located around 50 kms from Chennai, is Nokia's one of the largest facility in the World and employeed around 8,000 people directly and another 20,000 indirectly. Already the company announced VRS in the factory and over 5,000 workers have opted and those have choose the Scheme said "dont have a choice but to go for the Scheme". At present, only around 900 workers are working in the facility, say Union members.
Last year Microsoft decided to acquire Nokia's devices and service businesses and the transaction was completed in April. But the Chennai plant was kept away from the deal, since it was caught in an income tax dispute.
The Income Tax Department alleged Nokia need to pay around Rs 21,000 crore and said unless it pay the money the factory will remain freezed. Tamil Nadu Government's Sales tax department also slapped a Rs 2400 crore tax notice on the company.
