Nokia offers voluntary retirement at Chennai tax-dispute factory

NEW DELHI Fri Apr 11, 2014 3:57pm IST

Low-cost mobile handsets from Nokia on display at a store in hmedabad March 4, 2013. REUTERS/Amit Dave/Files

Low-cost mobile handsets from Nokia on display at a store in hmedabad March 4, 2013.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - Nokia Oyj (NOK1V.HE) is offering voluntary retirement at a factory at the centre of a tax dispute after a review of the regulatory environment in countries where it operates.

Nokia planned to transfer the plant to Microsoft Corp (MSFT.O) as part of the 5.4 billion euro sale of its handset division, but the local tax office seized it last year.

A court later ordered Nokia give the tax office a 35 billion rupee guarantee before transferring the plant to Microsoft. Nokia has yet to agree.

Nokia on Friday said, without referring to the dispute, that it launched a voluntary retirement scheme (VRS) after a review in which it considered the "predictability and stability of the regulatory environment" in countries where it operates.

"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," Nokia said in a statement.

The plant is in Chennai and, with about 6,600 fulltime employees, is one of Nokia's biggest for making handsets.

(Reporting by Devidutta Tripathy; Editing by Christopher Cushing)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

WTO

REUTERS SHOWCASE

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Car Launch Ahead

Car Launch Ahead

Tata Motors bets on new sedan to revive weak India sales.  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Market Eye

Market Eye

FII selling of Indian stocks on Thursday biggest in a month  Full Article 

Profit Falls

Profit Falls

DLF quarterly profit falls 29 pct on lower home sales  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China PMIs jump to multi-month highs in July, add to view economy is steadying  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage