Wednesday, June 04, 2014: The troubles for Foxconn India plants seem to have increased as the workers have alleged that the electronics manufacturer is offering a one-time lumpsum amount to them at its Chennai manufacturing facility, for an early retirement.
However, the senior employees allege that the company has not given the offer in writing. It is noteworthy that the Chennai facility is already facing trouble courtesy the Nokia India’s tax woes.
According to an ET report, an employee said that “They have not put anything on the notice board. It was just an oral communication. They are not willing to give anything in written.” However, Foxconn is tight-lipped about the matter.
According to the sources quoted in the ET report, the Foxconn management has said it would pay employees their 10 months’ salary along with gratuity and an additional amount of Rs 75,000 for an early retirement. A Foxconn India employee earns about Rs 14,000 a month and if the final amount is calculated basis the parameters given by the company, he would end up getting Rs 2.5 lakh. However, the union has rejected the offer.
Another source quoted in the report said, “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.” Employees are reportedly striving to negotiate for better terms. An employee said, “We want a higher compensation and also, a formal, written statement.”
The Foxconn India management has reportedly given time till 20 June to the employees to sign up for the scheme. The employees have been told that if they do not take it up, the management will resort to the legal recourse.
Foxconn India has about 1,700 permanent employees. It mainly depended on Nokia for its business in the country. Earlier, the company gave paid leave to around 450 employees and had asked them to come to work only once a week. Foxconn India had set up the plant in Nokia Special Economic Zone around eight years ago in Sriperumbudur, around 40 km from Chennai.
