Foxconn India workers seek better compensation

CHENNAI: The employees of Foxconn India have alleged that the electronics manufacturer is offering a one-time lumpsum amount to workers at its Chennai manufacturing facility who opt for early retirement.

The company, which has been hurt by Nokia India’s tax woes, has not given the offer in writing, senior employees at the manufacturing facility alleged.

“They have not put anything on the notice board,” said one of the employees, who did not want to be identified. “It was just an oral communication. They are not willing to give anything in written.”

Foxconn did not reply to an email seeking comment.

According to the sources, the management has said it would pay the employees an amount equivalent to their 10 months' salary plus gratuity and a further Rs 75,000. An employee with Foxconn India earns around Rs 14,000 a month and a rough calculation shows that he would get nearly Rs 2.5 lakh. The union, the sources said, have rejected the offer.

“They (the company) have said whoever wishes can take this offer up. But they also said we will follow the government laws and rules and then you won't even get this amount," said a second source.

Employees say they are negotiating for better terms. “We either want a higher compensation and also, a formal, written statement,” said an employee .

Sources said the management has given them time till June 20 to sign up for the scheme. “The management has said that if we do not take it up, they would consider taking the legal recourse,” said the first source.

Foxconn India, which is heavily dependent on Nokia for its business, has around 1,700 permanent employees. Nokia India has been involved in a tax litigation and its assets including its Chennai factory have been frozen.

This left the factory out of a global Microsoft takeover of Nokia's devices and services units. Subsequently, Nokia India announced a VRS that was accepted by around 5,000 employees after many attempts to reject the offer.

Employees at the Foxconn India factory also allege that the management has scaled down their transport facilities, forcing some of the women employees to resign.

Foxconn India, which makes mobile phone panels for Nokia, gave paid leave to around 450 employees and had asked them to come to work only once a week.

Foxconn India had set up shop in the Nokia Special Economic Zone around eight years ago in Sriperumbudur, around 40 km from Chennai.