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Union settles with Nokia, agrees to severance packages

Posted: 28 Oct 2014     Print Version  Bookmark and Share

Keywords:Sriperumbudur  union  Chennai  Nokia 

Labour union representatives agreed to negotiate severance packages with Nokia's management for the remaining employees in the handset maker's Sriperumbudur facility, reported Economic Times. The decision was a turnaround on the part of the union, which had taken a hard line on its demand to keep the Nokia factory open.

Assistant Labour Commissioner Dharmaseelan interceded in the talks between the union and management. The three parties will again convene on Oct. 30 with draft terms of settlement, which will be ratified by the labour department.

The union had earlier staged protests and asked the state and Centre governments to take over the factory, following Nokia's announcement that it would suspend handset production at the facility in Chennai due to lack of order inflows from Microsoft. (Read the full story here: Nokia shelves production at Chennai plant.)

The government, however, encouraged a peaceful solution.

Without government support and with about a thousand of livelihoods at stake, the union turned to Nokia management.

Several employees claim that they should receive better compensation than 5,600 employees who opted for Nokia's voluntary retirement scheme (VRS) in May this year. Under the VRS terms, a worker would get almost ₹6 lakh as separation payment depending on experience.

The management proposes to offer three months of salary for every year of service with a cap of 15 months, an executive told Economic Times.

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