A spokeswoman for the Finnish company's Indian unit said on
manufacturing unit for
"It's highly unlikely that the plant will transfer,
given that the [deal] closing with
said. "If the asset doesn't get transferred, we are entering into a service
According to Reuters,
conditions set by the Indian court, including payment of a guarantee for
potential tax dues in a dispute with Indian authorities, before it transfers the
the company can run the plant as a contract manufacturer in case it is not
allowed to be transferred to
The Economic Times,
many unanswered questions such as at what capacity will the factory operate?
How many workers will it need? How long will this arrangement continue?
Described by the ET as an 'orphan factory' that neither
globally, is down from producing 13 million handsets a month at its peak to two
to four million handsets and production lines are down from 20 to 10.
Employee, Arivazhagan was originally told about the handset
factory, which was the first in
for a job. He told the ET:
"Whenever we used to go home, our friends would
say, 'what a cool job you have. Now, your life is settled'. Now they don't even
come to meet us."
Hemalatha, who discontinued her studies and took up a job at
the company said: "They said we are part of one family- the
And suddenly, that 'family' has disappeared."
Earlier this month, Nokia India announced a voluntary
retirement scheme (VRS) for 5,200 workers (who are part of the Nokia India
compensation equivalent to three months of salary per year of employment, with
a cap of five years.
Several industry observers see the VRS as the
first step towards Nokia India cutting costs and eventually closing the plant.
"It came as a shock to us," says Lakshmi, one of the factory's first
workers. "They [the management] told us they have done all they could to
resolve the issues, and with no way out, they have offered the VRS."
Most Popular Stories
- National Retail Federation Reduces Sales Forecast
- Honda' s Accord Plug-in Hybrid Is a Fuel Miser
- Hernandez lawyer: Pats Records Dispute Resolved
- Social Media Startups That Pay You to Post
- Female Business Owners Still Face Gender Gap
- Congress Leaving Town as Deadlines Loom
- Amazon Fire Phone Improves on Familiar: Review
- Oregon Voters to Decide on Recreational Pot
- 4th Circuit Upholds Obamacare Subsidies
- Oregon to Vote on Recreational Marijuana