Foxconn: standoff between workers and management continues

Our Bureau Updated - November 27, 2017 at 12:51 PM.

Company says it doesn’t have enough orders to resume production

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The standoff between Foxconn India and its workers’ union on reopening the company’s cellphone components plant continues, with the management insisting that it does not have adequate orders to carry on operations at the factory near Chennai.

Union representatives stuck to their demand that the plant be re-opened, and the suspension of operations be termed “illegal”. However, officials of the Taiwanese manufacturer said since there was no order from customers, the company was not in a position to give job to nearly 1,300 employees.

CITU leader A Soundararajan told

Business Line that company officials are now talking about ‘closure’ of the plant from the earlier stand of suspension and giving leave to employees. “This is what we have feared about since the beginning.”

At the talks mediated by Tamil Nadu Labour Department officials, “the Assistant Labour Commissioner told company officials to open the gates. If they fail to do so, they will be prosecuted. However, officials told ALC that they were not in a position to do so,” Soundararajan said.

Company officials could not be reached for a comment. In earlier instances, officials participating in the talks declined to comment on any issue to the media.

On December 29, union leaders and Foxconn workers will once again try to enter the company premises located inside the Nokia SEZ despite the suspension. They were arrested on Tuesday while trying to do so. “We will try to enter. Let the police do their job,” Soundararajan said. The suspension of operations at the Nokia plant led to the loss of orders for Foxconn India.

During Thursday’s talks, company officials maintained that machinery at the plant could not manufacture new products. And, getting machinery to manufacture new products will take at least a year. This makes it impossible to give work to employees, sources said.

In an earlier statement to employees, Foxconn said it will soon come out with a voluntary retirement scheme or severance package.

Further talks on Dec 31 On December 31, representatives of both the management and workers will return to talks, which could be around the VRS and settlement package, sources said.

Some of the employees with whom Business Line spoke to said if they are given VRS or settlement, the package should be similar to that of Nokia.

However, they are worried that the company may not be offer such a package. “The union needs to get us a good package,” said an employee.

Published on December 26, 2014 16:16