Foxconn looks to offer VRS, severance package to workers

The company suspended operations in December

Foxconn's India arm, FIH is looking to offer a voluntary retirement scheme (VRS) or a severance package to workers at its Sriperumbudur factory.

Post suspension of operations, the company had asked workers not to come to work starting today. But the workers showed up and on being refused entry, started protesting outside the factory premises.

A meeting between the management and the union leaders is expected to take place around noon today to sort out the issue.
 

The company, in a notice displayed at the boundary of the facilty, said that it is unable to give regular work to employees due to a drop in business. 

Muthukumar, president of the CITU-backed employees union, which is recognised by the management, said that the workers are not ready to go on leave and they want to continue to work in the factory. 

"They (company) also said that they are ready to speak about settlement, which we did not agree with," he said. 

He alleged that the management has not paid any heed to the labour department's dictum that workers not be stopped from coming to work.

The management has held talks with the three unions for five times and a tri-partie meeting in the office of the Assistant Labour Commissioner, Sriperumbudur was also held on December 12 and 18, 2014. The next meeting will be held on December 26, 2014.

According to Muthukumar, while there were around 8,000 workers earlier in the facility. It has come down to 1,306 workers at present. Including another 400 employees in other departments, there are around 1,700 employees, of which more than 1,000 have been sent on leave by the company for lack of work orders.

The company claims that after the suspension of Nokia India's operations, its business has declined and efforts to bring in new business have not been successful. It is in this backdrop that the company suggested to send the workers on leave.

Earlier in December, FIH Mobile Limited said, "We can confirm that our India operation, FIH India Private Limited, will be suspending all operations at our manufacturing facility in Chennai effective December 24, 2014. This action is being taken due to a change in that facility's customer base and a related change in the manufacturing requirements of our customers in India. The company is working with the government and the relevant labor unions to ensure that this action is carried out in a manner that follows all relevant laws and regulations and is fair to the approximately 1,700 employees who will be affected by this move."