Friday, May 16, 2014: The tax-crisis faced by Nokia India may result in a shut down of Foxconn India’s Chennai plant. According to a report published by the Economic Times, Foxconn is likely to announce a voluntary retirement scheme for its employees soon. It is one of the main vendors for Nokia India and is largely dependent on the company for its business. The tax-woes though could result in the shut down of the facility.
The report said that the company has told its employees that it would soon offer the VRS schemes. A senior Foxconn India employee told ET, “They (Foxconn management) have said that business is dull and production low because of Nokia (India’s) tax problem. They said they are likely to offer VRS to us.”
Earlier, 450 employees had been given paid leave and asked to come to work only once every week. These employees though were being paid in full, barring incentives on attendance, bonus and production incentives. The Chennai plant currently operates as a manufacturing unit for Microsoft after the Redmond, California based technology giant finished their acquisition of Nokia. Foxconn, which makes mobile phone panels for Nokia India has been set up shop in the Special Economic Zone near Chennai.
