5,000 at Nokia Chennai unit opt for compensation exit route

Workers ask how will plant be run by 1,700 staff? Firm says will respect commitments under services contract

With the month-long voluntary retirement scheme (VRS) announced by Nokia India coming to an end on Wednesday, 5,000 employees of the mobile handset facility in Sriperumbudur near here have opted for it. Another 400 are expected to opt for VRS.

This could be one of largest VRSes offered by any company in India in recent times, said sources.

The factory directly employs 6,700. A little over 60 per cent are women.

Nokia India said, "While we set no target for the VRS in terms of employees, 5,000 have opted for it."

Workers who had not opted for VRS asked, "With the balance 1,700 workers, how will the factory be run?"

The company said, "Nokia intends to respect commitments under the services contract".

Workers said many had queued at the office to opt for VRS on Wednesday.

The union has demanded a withdrawal of VRS.

Nokia could not transfer the facility to Microsoft, which had agreed to buy its devices and services businesses globally for $7.44 billion.

On those opting for VRS, sources said workers in the facility for five years or more (some have been for eight) would get compensation that would include 15-month salary (each year of experience would be three months). Those with less than five years would be compensated on a similar basis. A worker would get Rs 1 lakh each as compensation and double the daily salary for the earned leave surrendered.

To support those that have taken up VRS, the company has introduced a bridge initiative. It is offering banking consultancy services and employment outlook training. It is introducing initiatives under the bridge.

These include working with experts to identify new employment areas, developing suitable training and skilling employees, conducting awareness sessions to share information on 30 skill development modules and employment outlook training schemes across sectors.

The company said, "The training programmes will be held over a period at 40 locations in Tamil Nadu, including Chennai." It would certify employees on the skills learnt, invite potential employers to facilitate placements and give limited grants to support entrepreneurial or academic ambitions of those who have worked for six years or more.