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Nokia buys peace with workers in Tamil Nadu plant

Chennai, 21 October 2009: On a day when labour strife in Manesar, the auto hub in North India took an ugly turn with a company official getting beaten up by workers, there is some positive news on the labour relations front coming in from the South.

Nokia India signed its first wage revision pact with the ruling DMK’s union in Tamil Nadu, the Labour Progressive Federation (LPF), as a result of which over 5,000 employees of the cell-phone maker here will see their salaries go up by Rs 1,500 to Rs 3,300 per month.

It is crucial for Nokia to ensure that its operations run smoothly in Tamil Nadu as its plant at Sriperambadur near Chennai is now the company’s largest manufacturing facility in the world. The tripartite agreement ( 12( 3) reached last week between Nokia workers’ progressive union, affiliated to LPF and the management before the deputy commissioner of labour, provided for increasing the monthly canteen allowance to Rs 1000 from Rs 850 and paying a night shift allowance of Rs 20, which will fetch Rs 200 for 10 shifts in a month.

The revision has come a boon to employees, mainly hailing from nearby rural centres as they will get arrears for the last nine months. Nokia has also agreed to pay a bonus of 8.33 % ( one month wage) to employees. The Finnish mobile handset maker major has set up its largest electronic hardware manufacturing unit on 210.87 acres allotted at Sipcot industrial park, Sriperambadur. The State Government has also extended a structured package of assistance to the MNC.

LPF general secretary and Nokia union President, M Shanmugam told ET as the workers were keen on clinching an early revision, an intermediate or short term wage settlement was concluded covering the period April 1, 2009 to March 31, 2010. "It is a big victory for the employees working in a multinational company and the wage revision has been concluded smoothly though a collective bargaining. While LPF affiliated unions are functioning in various public and private sector companies, this is the first time it is representing a large workforce in the Sriperambadur industrial corridor", he said.

Prior to the revision, the employees, who joined Nokia in April 2007, were getting a consolidated pay of Rs 4400 to Rs 5800 per month. Now, the intermediate settlement has fetched a hike of Rs 1500 to Rs 1750 for those with an experience of 16 months and 24 months ( including the 15 month training period).

Those working with experience of above two years and upto 36 months, have secured an increase of Rs 2000 to Rs 2250 and above 36 months, Rs 3000 to Rs 3300. As per the accord, the union and management will resume the talks in January to reach a long term settlement for revising the wages and allowances from April 1, 2010. It will provide for fixing DA and other allowances.