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Nokia workers in India go on a one-day strike

Posted: , by Maxwell R.

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Nokia workers in India go on a one-day strike
Nokia workers throughout India have staged a one-day strike, and workers at the Chennai plant in particular have started a hunger strike, in a demand to get more job security. The Chennai plant is at the center of a heated (and expensive) tax dispute between Nokia India and government officials.

Workers there at Chennai have accused Nokia of slowing production there, from more than 13 million units-per-month to under 4 million units-per-month, and that Nokia has shifted the entire Asha line of smartphones to facilities in other countries.

Nokia offered no comment about the accusations over production changes. Its plant in India has been at the center of a serious tax dispute with the government and is also a point of complication with Microsoft’s desire to buy Nokia Devices and Services, of which this manufacturing facility is a part of.  However, it is already known that the Nokia X is not being produced in India.

Indian officials seized the Chennai plant and have demanded hundreds of millions of dollars in guarantees in order to have the property returned. After losing the appeal in India’s Supreme Court, Nokia was then assessed a tax bill by the Tamil Nadu state government for hundreds of millions more. The bill was noted as “absurd” by Nokia.  The government has also ordered a special audit of all of Nokia India's accounts.

Nokia and Microsoft each have said these problems in India will not stop the merger, but the dollar value of that acquisition could be greatly affected if Nokia is not able to transfer these assets.

source: Business Standard

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posted on 01 Apr 2014, 02:00 4

1. chocowii (Posts: 470; Member since: 30 Jan 2014)

They should held their strikes near govt places for all we know corrupt officials wants money from Nokia.

posted on 01 Apr 2014, 12:03 1

14. b1acktiger (Posts: 223; Member since: 19 May 2012)

Why ? Because the govt caught the tax evasion ? Already these corporates are enjoying benefits. If they can't follow the laws in a country, they should find a way out.

posted on 01 Apr 2014, 02:03 1

2. anirudhshirsat97 (Posts: 408; Member since: 24 May 2011)

Feel bad for them. It's not their fault yet they will have to suffer the worst of it.

posted on 01 Apr 2014, 02:27 1

3. jexxx (Posts: 48; Member since: 23 Feb 2014)

I can't see anyone there even on a normal day too. Oh wait...

posted on 01 Apr 2014, 02:43 4

4. microsoftnokiawin (Posts: 1236; Member since: 30 Mar 2012)

Indian government so stingy and corrupt !

posted on 01 Apr 2014, 04:53 7

5. tech2 (Posts: 3487; Member since: 26 Oct 2012)

What are u talking about, fanboy ?! Nokia owes tax to the government and they are shutting down the factory to avoid the tax.

posted on 01 Apr 2014, 05:01 2

6. microsoftnokiawin (Posts: 1236; Member since: 30 Mar 2012)

lol now I'm a fan boy explain to me why the government all of a sudden remembers years worth of taxes ??

explain to me why when nokia pays it off the government finds out that nokia owns alot more then what they originally paid ???

that doesn't sound strange in the slightest bit or a bit shifty !

i guess all you can do is call people fanboys these days !

posted on 01 Apr 2014, 05:21 6

7. tech2 (Posts: 3487; Member since: 26 Oct 2012)

They were in SEZ and were only allowed to produce the handsets and NOT to bundle the software (for which they got tax exemption) because of the double tax treaty between India and Finland.

Now government just recently found out about Nokia's doings that they were bundling the software too (which was not in the deal and hence taxable) and decided to impose tax on that. So you are saying is just because they found out NOW that they were indulging in tax evasion they shouldn't charge because its too late ?!

FYI, as soon as Nokia found out that leaked internal documents are with Indian government and they knew about their malicious practices they transfered all their funds to Finand. Nokia knew exactly what they were doing and were not at all innocent.

posted on 01 Apr 2014, 05:39 1

8. microsoftnokiawin (Posts: 1236; Member since: 30 Mar 2012)

well that wasn't exactly made clear by the many articles in that case

it's Nokia fault
but at the end of the day business is dirty !

posted on 01 Apr 2014, 07:06 2

12. anirudhshirsat97 (Posts: 408; Member since: 24 May 2011)

Finally someone who explained it properly.

posted on 01 Apr 2014, 06:10 3

9. iyngr (Posts: 72; Member since: 14 Jul 2013)

Lets get Kejriwal onto this

posted on 01 Apr 2014, 06:18

10. asingha94 (Posts: 295; Member since: 08 Apr 2012)

he surely would love join them!!lol!!sry this is a tech site

posted on 01 Apr 2014, 06:59

11. fireblade (Posts: 717; Member since: 27 Dec 2013)

Ah, I still remember a Nokia of my friend's that was made in India. Too bad Nokia shuts down its plant.

posted on 01 Apr 2014, 08:34

13. corporateJP (Posts: 2458; Member since: 28 Nov 2009)

They are lucky they didn't stop production altogether at this plant.

Settle this and get on with it.

Nokia may be in the wrong here, but the Indian governmental entities here are ridiculous.

posted on 01 Apr 2014, 20:55

15. roscuthiii (Posts: 2233; Member since: 18 Jul 2010)

The penalties for tax evasion were already well defined. Nokia took a shot, but they got caught. If they hadn't taken that shot, they wouldn't be facing paying any exorbitant tax penalties at all.

No government likes tax evasion, just ask Al Capone.

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