Electronics parts maker Foxconn will suspend operations at its facility near here from December 24, a development than will affect 1,700 workers and comes after its major customer Nokia shutting production at local facility in November.
However, employees of the contract manufacturer of mobile phone parts have threatened to go on strike against the management’s decision to suspend operations.
Foxconn said, “We can confirm that our India operation, FIH India Pvt Ltd, will be suspending all operations at our manufacturing facility in Chennai effective December 24, 2014.”
Noting that about 1,700 employees would be affected by this move, the company said it was working with the government and the “relevant” labour unions to ensure that “this action is carried out in a manner that follows all relevant laws and regulations and is fair.”
The company said it is suspending operations at the plant following a change in manufacturing requirements of clients in India.
However, workers threatened to go on strike to protest the management’s decision.
“A meeting in the presence of Assistant Labour Commissioner was held today. There were people from the management and representatives of the Union. The issue was discussed and we have clearly explained our stand that the employees should not be removed from service,” an official of CITU-backed workers’ union told PTI.
The development at Foxconn India factory comes after the suspension of production at Nokia’s facility at Sriperumbudur which was excluded out of the USD 7.2 billion deal the Finnish handset maker had inked with Microsoft.
Following the exclusion of the Nokia plant, several employees were up against management decision as some of them were there right from day the plant was inaugurated in 2006.
Nokia was one of the major customers for Foxconn. Besides serving Nokia, Foxconn has been involved in shipping some of the products to China and Vietnam.
Foxconn has invested around Rs 850 crore at two facilities present in the campus of Nokia Special Economic Zone and SIPCOT Industrial Park at Sriperumbudur.
“This action also related to a restructuring being carried out of our India operations that is designed to ensure that we are able to meet both the current and future needs of our customers in that important market,” Foxconn said.
According to Union officials, about 70 per cent of products manufactured at the plant was served to Nokia unit which suspended production from November 1.
Asked about their next course of action, Union sources said there would be second round of tripartite talks on December 18.
“We want our jobs to be secured. We are planning to meet Labour Minister and also the State Government representatives seeking their support. We will not hesitate to go on strike,” a union representative said.
Earlier, a Tamil Nadu government official had told PTI that besides Foxconn, several ancillary units that were supplying parts to Nokia had seen impact on their revenue.