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Employees of the Nokia facility in Sriperumbudur near here have decided to add themselves as a party to a case between the company and the income tax department continuing at the Delhi High Court. This follows the company’s and its origin country Finland’s foreign minister’s recent statements that if the plant would not be included in deal with Microsoft unless unfrozen by the department before December 12.
Saravanakumar, president of the plant union, Nokia India Thozhilar Sangam, that claims to have the support of 4,800 employees, confirmed the impleading and said they were planning to move to the high court on Thursday, three days before the next hearing.
While refusing to give any details, he said, “We will decided to take legal steps and will move the high court on Thursday to implead us in the case and consider the life of over 30,000 people who depend on this factory.”
A Nokia spokesperson had earlier said, “Nokia remains firmly committed to moving its Indian assets to Microsoft and will continue to cooperate with the Indian authorities to ensure a successful transfer. But time is of the essence. Nokia calls on the Indian government and the tax authority to work with urgency, so that the uncertainty about the site’s future can be dispelled before the deadline of December 12.”
Saravanakumar, president of the plant union, Nokia India Thozhilar Sangam, that claims to have the support of 4,800 employees, confirmed the impleading and said they were planning to move to the high court on Thursday, three days before the next hearing.
While refusing to give any details, he said, “We will decided to take legal steps and will move the high court on Thursday to implead us in the case and consider the life of over 30,000 people who depend on this factory.”
A Nokia spokesperson had earlier said, “Nokia remains firmly committed to moving its Indian assets to Microsoft and will continue to cooperate with the Indian authorities to ensure a successful transfer. But time is of the essence. Nokia calls on the Indian government and the tax authority to work with urgency, so that the uncertainty about the site’s future can be dispelled before the deadline of December 12.”
In case the assets are not allowed to be transferred, Nokia might seek a contract manufacturing agreement with Microsoft for up to 12 months, it said on Wednesday.
Nokia's factory, its largest in the world, employs around 35,000 people directly and indirectly. Of these, 8,000 — of which half are women — work inside the factory and 7,000 are permanent.
The employees’ union, which has written to Prime Minister Manmohan Singh, Finance Minister P Chidambaram and Tamil Nadu Chief Minister J Jayalalithaa, is now planning to meet the Member of Parliaments from Tamil Nadu.
The Nokia Telecom Special Economic Zone in Sripermubudur, 30-40 km from Chennai, attracted investment of $500 million, of which $310 million was from Nokia and the remaining from the four suppliers — Foxconn, Wintek, LOM and Salcomp.
Nokia-Microsoft deal passes muster with the EU
The European Union antitrust regulators have approved Microsoft's $7.3-billion acquisition of Nokia's mobile devices business without conditions. However, uncertainty remains over the fate of Nokia's factory at Sripermbudur, near Chennai, its largest in the world, that is caught in a dispute with the income tax department in India.
The European Commission on Wednesday said, "The Commission concluded the transaction would not raise any competition concerns, in particular because there are only modest overlaps between the parties' activities and the links between Microsoft's mobile operating systems, mobile applications and enterprise mail server software with Nokia's smart mobile devices are unlikely to lead to competitors being shut out from the market."
In September this year, Microsoft agreed to buy Nokia’s mobile phone business, including the brand and manufacturing facilities. Nokia’s devices and services businesses will likely be part of Microsoft by the end of the quarter ending March.
‘Nokia must clear tax liability'
A senior finance ministry official on Thursday said Nokia, which is selling its mobile devices business to Microsoft, would have to clear a tax liability of around Rs 6,500 crore. “Nokia will have to pay the total tax liability,” the senior official said.
Press Trust of India
