Nokia workers lobby Commerce Minister Sitharaman's to prevent shutdown

Union Commerce Minister Nirmala Sitharaman said she will pursue the matter with the finance ministry

Labour union representatives at the Nokia factory in Sriperumbudur, 40 km from here, met Union commerce minister Nirmala Sitharaman on Sunday to ensure it doesn’t close.

They have asked for central government takeover, if nothing else works. The minister has said she’d take the matter up with the finance ministry. Nokia India has said it would suspend operations from November 1. Around 6,000 jobs, direct plus indirect, are at stake.

The union is affiliated to the pro-CPI(M) Centre of Indian Trade Unions.

A Soundararajan, MLA and head of the Nokia India Workers Union, said they’d also met the industries and labour minister of Tamil Nadu. However, the state government was yet to give a response.
 

Finland-headquartered Nokia had sold its mobile telephone unit to Microsoft but couldn’t sell this factory, due to a dispute with the income tax department.

It has since said it is ending operations here, as Microsoft had terminated the existing purchase agreement with the unit. Prior to this, Nokia had offered employees a voluntary retirement scheme.

TAX TROUBLE

• January 8, 2013: Income Tax Department inspects the Chennai factory
   
• March 21, 2013: IT Department issues a Rs  2080 tax demand, later rectifies to Rs  2,649 crore on NIPL.
  Later matter moved to Court
   
• February 2014: Tamil Nadu sends Rs  2,400 crore sales tax notice
  

 

April 2014: Nokia completes the sale of Devices & Services business to Microsoft globally, excluding Chennai factory which was frozen by IT Department. Company announces VRS to employees
 

October 6, 2014: Company says that from November 1 it will suspend operations at Sriperumbdur as Microsoft is ending its sourcing agreement with Nokia