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While opposing the offer made on Thursday, the union representing the workers said the company was forcibly “chucking” temporary workers from the factory. M Saravanakumar, president, Nokia India Thozhilar Sangam, which claims the support of 4,800, said they had petitioned the labour commissioner here on Friday. While the union is saying the company has told 750 trainees not to come after May 15, a Nokia spokesperson said "no dates were specified. We said if they (workers) opt for the scheme, they don’t need to come after May 15."
Alleging the company officials were putting all sorts of emotional and other pressures on the employees to take up the VRS, he said the union was resolute in opposing this and would go “to any extent” to protect the employees’ jobs.
He said the labour commissioner took the petition, heard the union and assured the leaders he’d call the management to hear their version.
As for the management, “Nokia regularly reviews its manufacturing strategy to optimise and ensure the smooth and timely delivery of its products. This process considers many factors, including the predictability and stability of the regulatory environment in the countries where the company operates. Following such a review, today we can confirm we have launched a voluntary package (VRS),” said the company’s spokesperson on Thursday. “We feel this package offers staff the chance to seek new opportunities outside the company, from a firm financial footing”.
The spokesperson said they’d not set any target for the VRS in terms of number of employees. Sources among the latter had said the offer was 15 months of salary, plus Rs 1 lakh, for those taking the VRS. And, compensation for earned leave would be calculated by looking at daily pay, based on the basic salary; the company has offered to pay double the per-day salary thus calculated.
However, there is much ambiguity in the announcement, complained an employee. According to him, the compensation should be based on the experience of the person; the offer does not specify if the salary referred to would be gross or net. The company did not reveal any details. Nokia says staffing at Chennai had fluctuated based on demand and the number of external employees used, with the current figure at 6,600 full-time employees. The total of staff is estimated at around 8,000 people directly, 60 per cent of whom are women, and another 21,000 indirectly.
The courts and tax departments have attached Nokia India’s assets, including this factory, against a Rs 21,000-crore alleged tax evasion case. Recently the Tamil Nadu government also slammed a Rs 2,400-crore tax notice on the company. This factory was supposed to get transferred to Microsoft, which decided to acquire Nokia recently in a €5.44 billion deal, along with other factories elsewhere.
What Nokia says
While Union is claiming that the company has told the trainee workers not to come after May 15th, Nokia spokesperson clarified that "no dates is specified and we only said that if they opt for the Scheme, they dont need to come after the 15th and can collect their dues, as per the Scheme".
According to the notice, which was given to the workers, copy of which is available with Business Standard, stated that training period for the trainnees will be over on May 14, 2014, from the following day trainee workers dont have to come to work. The notice also said that ID Card, Apron, Locker Key, Laptop, Tools & any other items of the company that are in possession should be handed over to HR department in two days.
Meanwhile sources also said that the contract period will come to end, with the 700 contact employees who will be completing in different batches. If their is a vacancy and need the company fill them, if the requirement doesn't arise then the company don't have any choice.
