x PhoneArena is looking for new authors! To view all available positions, click here.
  • Home
  • News
  • Nokia might give the pink slip to some of the 8,000 employees working at the Chennai plant

Nokia might give the pink slip to some of the 8,000 employees working at the Chennai plant

Posted: , by Peter K.

Tags:

Nokia might give the pink slip to some of the 8,000 employees working at the Chennai plant
Nokia just announced that employees that work at its plant in Chennai, India, might take advantage of the company's Voluntary Retirement Scheme (VRS). This allows them to quit and look for another job while Nokia provides them with a"firm financial footing" until they get employed again. The Finnish giant also confirmed that the overall manpower of the company's plant in Chennai would soon be reduced.

The reason for these measures is the tax dispute between Nokia and the Indian government, which has not been resolved yet. Last year, the Indian officials stated that the smartphone maker hadn't paid the whopping amount of $3 billion in taxes and froze all assets of the company, including the Chennai plant itself.

“Nokia is offering a clear financial option for interested factory employees. We feel this package offers staff the chance to seek new opportunities outside the company based on a firm financial footing,” Nokia said.

The government demanded that Nokia should pay roughly $500 million if it wants to see its property returned. Nokia stated that the government's claims are simply “absurd” and denied to pay. According to analysts, the Chennai plant in India is a valuable asset, worth at least $1 billion to Nokia. Its closedown might affect the merger with Microsoft in a very bad way.

Apparently, Nokia workers across India were not very happy with these recent developments, as they went on a one-day strike and local Chennai employees even went on a hunger strike on April 1. It seems that most of them will have to find another job, yet it's positive to see that the Finnish giant is trying to take care of its workers.

source: The Hindu Business Line via WMPoweruser

27 Comments
  • Options
    Close




posted on 11 Apr 2014, 08:28

1. itsdeepak4u2000 (Posts: 2625; Member since: 03 Nov 2012)


I hope this would be sort out soon.

posted on 11 Apr 2014, 08:38 1

3. sgodsell (Posts: 1227; Member since: 16 Mar 2013)


The Indian government is not very smart. 8000 jobs is a lot of employed workers, plus on average that feeds a wife and 4 kids as well. So it was helping around 40,000 people. It will also pay taxes and will not be a burden to the government. In times like this they are only thinking of the money now and not the future. All governments are the same I guess.

posted on 11 Apr 2014, 08:56 7

5. tech2 (Posts: 2046; Member since: 26 Oct 2012)


Do you know the entire case before making that comment ?!

Nokia owes the tax to the government and instead of paying up they're saying we'll shut down the plant itself and fire the staff as it saves them having to pay tax. If nokia were so innocent they would've filed lawsuit against Government but they didn't which proves government is right to ask that money.

Now Nokia is basically using those employees as scape goat for not paying the tax.

posted on 11 Apr 2014, 10:27

9. papss (unregistered)


Its never been proven and you are stating one side of the story. If they owe it then I agree it needs paid but if they don't then I believe Nokia should sue the government for falsely accusing them

posted on 11 Apr 2014, 10:34 2

11. Droid_X_Doug (Posts: 5752; Member since: 22 Dec 2010)


You can't sue the government for false accusation! Things like that are only permitted in places like the U.S. Elsewhere, the govt. is above challenge. If you weren't posting your comment from the U.S., you could be at risk of becoming 'disappeared'.

posted on 11 Apr 2014, 10:36 2

12. tech2 (Posts: 2046; Member since: 26 Oct 2012)


Lol......India is as much as democracy as U.S. Its not a communism where you can't challenge the government.

India has an independent court (Supreme Court) which analyses the case irrespective of any bias may it be government or not.

posted on 11 Apr 2014, 10:45 1

16. Droid_X_Doug (Posts: 5752; Member since: 22 Dec 2010)


Not even the IRS seizes property as its first action. First, liens are filed, but the property continues operations for its owner. Once there has been a due process (with full right of appeal to the SCOTUS), and the company has lost, then there is a levy/seizure.

Indian govt entities have gone straight to seizure (guilty unless proven innocent) before appeals have been exhausted. Slight difference.

posted on 11 Apr 2014, 10:52

17. NokiaFTW (Posts: 2006; Member since: 24 Oct 2012)


You're right. Also, the ruling govt has no control over the Supreme Court. The Supreme Court in India is an independent body. Hence, the decisions coming out of Supreme Court will be based on evidence and the truth.

posted on 11 Apr 2014, 15:15

25. elitewolverine (Posts: 1570; Member since: 28 Oct 2013)


@tech2 no you do not know the case.

Nokia does not owe the tax, the tax is about 500million if that. What the indian government wants is future tax. And they have estimated that the futures tax is 3billion.

And they want 500 of that up front. So no it is not owed, it is based off of future owement, and an estimation.

posted on 11 Apr 2014, 15:16

26. elitewolverine (Posts: 1570; Member since: 28 Oct 2013)


http://online.wsj.com/news/articles/SB10001424052702304914904579438874246578600

posted on 11 Apr 2014, 11:05

19. Ashoaib (Posts: 2010; Member since: 15 Nov 2013)


nokia should get rid of this plant now, it becomes a burden on their weak shoulders OR they should quickly finish the deal with mega bucks rich microsoft. microsoft has good relations with indian government and politicians, so they will solve this tax issue easily

posted on 11 Apr 2014, 08:34 1

2. alterecho (Posts: 1082; Member since: 23 Feb 2012)


Do they owe the said amount to the government or not?

posted on 11 Apr 2014, 09:02

6. grapeseed87 (Posts: 123; Member since: 13 Mar 2013)


They do. Nokia and some of the other manufactures use Asian countries as assembly and manufacture plants for the lesser costs and ability to evade taxes. They use loopholes and the corruption in the infrastructure to work around those. What is happening is the govt. is actually not letting them do that now and its their corporate responsibility to pay those taxes. While its understandable that the huge sum might cause strain on the merger on the table, a structures settlement through compromise can be reached if both sides agree, I am sure.

posted on 11 Apr 2014, 10:28 1

10. papss (unregistered)


See above comment.. Its not been proven but has been accused.

posted on 11 Apr 2014, 11:58

22. elitewolverine (Posts: 1570; Member since: 28 Oct 2013)


It is larger than any company there in India, are you going to tell me that Nokia is the largest company there? No there is more fishy things going on and India is making a statement with the MS merger cause MS has cash.

posted on 11 Apr 2014, 15:44

27. NokiaFTW (Posts: 2006; Member since: 24 Oct 2012)


lol Nokia is definitely not the largest company in India I can tell you that for sure, but it does have a great brand value and respect.

posted on 11 Apr 2014, 09:02 1

7. PeterK. (Posts: 91; Member since: 13 Nov 2013)


The government says it does, Nokia says it doesn't. Go figure.

posted on 11 Apr 2014, 10:39 1

13. Droid_X_Doug (Posts: 5752; Member since: 22 Dec 2010)


And the govt. being the sovereign has seized the plant. Slight advantage to the govt.

Only recourse for Nokia is to layoff workers, since they aren't making anything. Props to Nokia for giving the workers a severance package. U.S. companies in a similar situation, would just let the employees go.

posted on 11 Apr 2014, 08:42

4. StraightEdgeNexus (Posts: 3202; Member since: 14 Feb 2014)


Pink slip? That reminded me of nfs. I know what i'm going to do next 20 hours. Bring on the dualshock lol.

posted on 11 Apr 2014, 10:13

8. power_x (Posts: 222; Member since: 28 Aug 2013)


You mean FIFA 14 right ?

posted on 11 Apr 2014, 10:42

14. StraightEdgeNexus (Posts: 3202; Member since: 14 Feb 2014)


Lol no. In NFS MW when you defeat a blacklist rival you get a pink slip to win his car.

posted on 11 Apr 2014, 11:23

20. skinny95black (Posts: 113; Member since: 06 Jan 2013)


The good old days when nfs was good not like now

posted on 11 Apr 2014, 11:36

21. StraightEdgeNexus (Posts: 3202; Member since: 14 Feb 2014)


True. NFS MW 2012 edition was horrible. Btw i'm playing original nfs mw black edition and about to complete 23rd time.

posted on 11 Apr 2014, 14:33

24. Nathan_ingx (Posts: 3012; Member since: 07 Mar 2012)


Took me about a month of light racing to finish that game...it was awesome when you finally crossed the bridge.

posted on 11 Apr 2014, 10:43

15. StraightEdgeNexus (Posts: 3202; Member since: 14 Feb 2014)


Lol no. In NFS MW when you defeat a blacklist rival you get a pink slip to win his car.

posted on 11 Apr 2014, 10:53 1

18. brrunopt (Posts: 504; Member since: 15 Aug 2013)


3B in taxes for a 1B plant ?

posted on 11 Apr 2014, 12:42

23. zennacko (Posts: 236; Member since: 16 Jun 2013)


I think that they should tell Indian govt to F-off and find another country with the sweet 20-year no hassle or PITA taxes guarantee to build a factory twice as big (and twice as profitable with an eventual full tax exemption). It's counterproductive to keep pressuring companies for petty issues. Even if it's a large sum, they need to think about the jobs, the families from the employees, and the nationwide impact should Nokia go for the "We are sick of all this BS, we'll be leaving and if you want our products, import them with all the customs duties that may apply(and in a 3rd world country,there WILL be severe duties)." path.

Want to comment? Please login or register.

Latest stories