Employee Unrest at NOKIA India

Abstract

Nokia India Pvt Ltd (NIPL) was part of Nokia Corporation, Finland. In March 2013, the Indian Income Tax department accused NIPL of evading taxes amounting to USD 3.5 billion. Simultaneously, the market share of Nokia Corporation declined following increased competition from android devices. In September 2013, Nokia announced the sale of its global Devices and Services division to Microsoft Corporation. The Indian IT department freezed the assets of NIPL, disallowing transfer of assets and Microsoft excluded the Chennai plant of NIPL from the deal. In mid-April 2014, NIPL offered Voluntary Retirement Scheme (VRS) to its workers. Despite efforts by trade unions, the plant finally shut operations on November 1, 2014 leaving 30,000 direct and indirect employees jobless. The case discusses the labour relations impact in global manufacturing chains.