Nokia says dispute settled

Employees at Nokia's Sriperumbudur factory have decided to withdraw strike after the Tamil Nadu government intervened.

According to a company statement, work on the third shift will commence immediately.

Workers had gone on strike on Tuesday, demanding better wage settlement terms and reinstatement of workers suspended in January this year.

Nokia India Employees Progressive Union was spearheading the strike.

The strike was called off after a meeting between TM Anbarasan, Minister of Labour, government of Tamil Nadu, representatives of NIEPU and the company management.

Nokia said in a statement that the long-term wage settlement discussed with its employees through NIEPU on July 12 had been agreed upon. The state government and union representatives could not be reached for confirmation.

The agreement is expected to be signed among the state government, NIEPU representatives and company management tomorrow.

Nokia also offered to revoke the suspension order of all employees under suspension.

Nokia reported a 20 per cent rise in exports at Rs 12,000 crore (Rs 120 billion) in 2009-10, compared to Rs 10,000 crore (Rs 100 billion) last year.

The company's facility at Sriperumbudur, near Chennai, has become the largest exporter, in terms of value, among all special economic zones in the country, and for Nokia, compared to other facilities.