Nokia India's former employees file petition to stop it from moving Chennai factory's machinery

Also sought the court to direct the company to pay salaries dating from November 2014

The Madras High Court has issued notice to the State government and Nokia India Pvt Ltd on a petition filed by a group of employees of the company, who have been working at the Nokia SEZ in Sriperumbudur, near Chennai. The petition was filed against moving the machinery and materials from the factory.

The writ petition, filed by R Veerasekaran, came up for hearing on Wednesday in the bench of Justice M Duraiswamy. The petition argues that the company should not be permitted to move the machinery and materials from the facility, after taking incentives from the government and receiving large amount of profits for several years.

It also alleged that after taking the benefits, the company closed the factory by settling the workers and has not taken permission from the government for the closure.

The workers, who did not agree to the severance package offered by the company, even though it was accepted by the members of the workers' union, sought their dispute to be taken up for conciliation in front of the Assistant Commissioner of Labour. They also sought the court to direct the company to pay wages for the employees from November, 2014. It may be noted that the company suspended operations in the facility during that time and settled the severance package with a section of the workers.

The factory, which once had around 8,000 direct workers, has suspended operations from November 1, as Microsoft, which bought the mobile devices business from Nokia, terminated the transitional services agreement (TSA) with this facility.

Nokia and its facility in Sriperumbudur has been facing various tax related disputes in the past. Originally, the factory was supposed to be transferred to Microsoft, which acquired Nokia's device and service business globally, but it was left out from the deal, since the I-T Department, which slapped a Rs 21,000 crore tax notice against the company, had shut down the factory. Later, Tamil Nadu Government also slapped a Rs 2,400 crore sales tax notice.

Foxconn, a supplier to Nokia, also suspended operations of its facility in the Nokia SEZ in Sriperumbudur, stating that it does not have the orders to work. It has also entered into a severance package with the workers' union, according to sources.