Foxconn shuts Sriperumbudur unit after severance deal

After weeks of negotiations with employees agitating against suspension of operations at the Foxconn's Sriperumbudur plant, the electronic parts manufacturer said a severance agreement has been reached and the facility is closed down.

In a response to PTI query today, Foxconn said, "A settlement for severance was concluded with employee representatives on February 12, 2015 and based on that agreement, the last day of employment for all employees of FIH India Private Ltd was February 10."

"The company's facility in the Nokia Special Economic Zone, Chennai, officially closed its operations on February 10, 2015," it said.

The Taiwan-based company suspended operations from December 22, 2014, at its facility located in Nokia Special Economic Zone, following exit of Nokia on November one, 2014 which was the main customer of the company.

Foxconn decision to suspend operations from the facility triggered labour unrest as about 1,300 employees fearing job losses resorted to various agitations including observing a token hunger strike.

Several rounds of tripartite talks were held in the presence of Assistant Labour Commissioner, Sriperumbudur district, following suspension of production as the employees demanded the management to reopen the unit.

Last week, Foxconn India Employee Union, backed by CITU, Honorary President, A Sounderrajan said the management has informed them that the plant will be closed from February 10.

"We were told officially that the management has decided to close the plant from tomorrow (February 10). But, this will not stop us from intensifying our protest," he said.

Following its decision to suspend operations, the company said it worked with the State government and employee representatives to reach an amicable compensation arrangement that follows all applicable laws and regulations and is fair to all parties.

At the time of suspending production, Foxconn, which manufactures electronic parts, in a notice served to the employees said it offered Voluntary Retirement Scheme or severance package to 1,306 employees.