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

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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