Nokia on Thursday offered a voluntary retirement option for employees at India's Tamil Nadu manufacturing plant.
Business Line reported the move comes after the Finnish business indicated that a staff reduction at the plant was imminent owing to uncertainty in continued operations.
Nokia's Tamil Nadu manufacturing plant, which is to be handed over to Microsoft as part of the $7.5 billion deal, is currently embroiled in a tax dispute. Reuters said that a court had asked Nokia to provide a $582 million guarantee bond before transferring the plant to Microsoft, to which Nokia is yet to respond.
The proposed retirement scheme has not been received well by employees' unions, which said it was a move to get rid of employees in a troubled situation.
"We oppose the scheme. It is an indirect way to send people away. We will advise our members not to accept it. The management has taken this decision without consulting us," said Tamil Nadu, general secretary of the Centre of Indian Trade Unions, to Business Line. Nokia India's trade union is associated with the Centre of Indian Trade Unions.
However Nokia has defended its scheme saying it was optional to all employees.
In a statement to Reuters the company said, "We have set no target for the VRS in terms of the number of employees. All of the employees coming forward are entitled to the package."
Business Line also quoted the company saying the staffing in Tamil Nadu has always seen fluctuations according to the demand. At present the plant employees around 6,660 employees.
Further defending the scheme, the company said such schemes are launched after analyzing the stability of the regulatory environments of host countries. It said such exercises are undertaken frequently to ensure timely delivery of products.
"Following such a review, we launched a VRS. Nokia is offering a clear financial option for interested factory employees. We feel this package offers staff the chance to seek new opportunities outside the company based on a firm financial footing," said the business, according to Business Line.
