Finland-based Nokia has paid about Rs 2.5 billion as compensation to employees of its Chennai handset manufacturing facility that opted for the voluntary retirement scheme (VRS) offered by it in May 2014. Under the scheme, employees were entitled to Rs 400,000 – Rs one million as compensation. About 5,600 employees accepted voluntary retirement while about 900 employees are still employed at the facility at Sriperumbudur.
The company had offered VRS to its employees as the Chennai plant was converted into contract manufacturing facility, whose operations are based on supply orders. This was a result of the company?s decision to exclude the plant from the $7.2 billion Nokia-Microsoft deal.
Nokia had invested about Rs 17 billion in providing direct employment to 7,000 people in the region, while indirect employment to 3,500 people, 60 per cent of which were women.
