1. Foxconn offers severance package Chennai plant workers

Foxconn offers severance package Chennai plant workers

As the stand-off between employees and Taiwan-based Foxconn continued over suspension of production at its plant...

By: | Sriperumbudur | Published: December 23, 2014 7:35 PM
Foxconn had earlier announced that it would suspend operations from December 24 at its plant here due to a steep fall in orders in the wake of Nokia shutting facility here. (Reuters)

Foxconn had earlier announced that it would suspend operations from December 24 at its plant here due to a steep fall in orders in the wake of Nokia shutting facility here. (Reuters)

As the stand-off between employees and Taiwan-based Foxconn continued over suspension of production at its plant here, the management has notified that it would offer severance package or VRS to workers.

For the second successive day, protesting employees tried to force their way into the factory, but the posse of policemen who stood guard took about 300 of them into custody as a preventive measure.

The police said detained employees, lodged in a marriage hall, have been released.

Foxconn had earlier announced that it would suspend operations from December 24 at its plant here due to a steep fall in orders in the wake of Nokia shutting facility here.

The workers’ union, however, claimed that the management announced holiday on Monday and Tuesday, thus advancing the suspension by two days even as tripartite talks are going on to reach at an amicable solution.

According to the union, over 1,700 employees would be impacted by the suspension.

Meanwhile, in a notice to employees, a copy of which was circulated to Labour Department, Sriperumbudur, Foxconn said, “In order to reach for an amicable solution, it is now informed that the company has decided to offer VRS or severance package.”

As there is a situation that employees cannot be offered jobs, the management has decided to give them salaries along with paid holidays, it said.

“The company appeals to the employees not to come to the factory until further orders. Employees are requested to cooperate in these difficult times and maintain peace till a settlement is reached”, the company said.

Foxconn India Employees Union President, E Muthu Kumar said the tripartite talks scheduled for December 26 will be held at Labour Commissioner office as announced earlier.”We want jobs. We do not want the plant to be closed like Nokia’s facility”, he added.

The Foxconn management refused to accede to the Employees Union demand for opening the factory today, even after labour authorities tried to persuade them.

The reconciliatory talks held by Assistant Labour Commissioner Dharmaseelan with top officials of the company and representatives of Employees union failed to yield any solution at the second round of negotiations today.

The management in its circular put up infront of the plant has said it would offer wages for the employees.

Foxconn said due to lack of orders from its customers there was no jobs for regular employees.

“However, considering the welfare of the employees, the management has been giving salaries for the regular work employees for the last eight months. While it was 100 persons initially, the total number of persons who were given salaries without jobs was increasing and stood at 850 persons in November”, it said.

For the welfare of the employees and considering the future, the company along with the registered trade unions have been discussing the issue and five round of talks were held so far.

Besides, the the company has held tripartite talks in the presence of Assistant Labour Commissioner on December 12, December 18 and the third round is scheduled for December 26, the company said.

Tags: Foxconn
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