Unions vie for recognition at Foxconn

CHENNAI: The world's largest electronics contract manufacturer, Foxconn, is bracing for a multi-cornered battle to decide on the officially recognised trade union for 1,306 workers at its Sriperumbudur plant, 50km from Chennai.
The ruling AIADMK-backed Anna Thozhir Sangam Peravai (ATS), DMK-backed Labour Progressive Front (LPF) and Left-wing Confederation of Indian Trade Unions (CITU) are locked in a battle for control of the trade union at Foxconn.The deadline for filing nominations for union posts was Monday (November 24). Only CITU-backed candidates filed nominations while ATS and LPF sought time to decide their course of action. The election is slated for December 4.
"With the deadline having passed, labour department officials and the company should announce our candidates as elected unopposed," said A Soundararajan, general secretary, CITU. A decision will be announced by labour department and company by Wednesday.
ATS, the official recognised trade union at Foxconn, raised its flag in the factory when AIADMK stormed to power in 2011. Previously, LPF was the official union when DMK ruled the state.
"Both LPF and ATS have sought one year for the election," Soundararajan said. "We have always maintained that we have the workers' backing. With ATS and LPF practically walking away, our stand has been vindicated," he said.
The Supreme Court had ordered assistant commissioner of labour of Kancheepuram district (where the factory is located) to conduct elections. The labour issues have surfaced at a time when the company is staring at a bleak future, like many electronics manufacturing services (EMS) units, after the closure of the Nokia plant in October.
"There are several issues to be resolved. The first is renegotiation of the wage agreement signed between Foxconn management and ATS," Soundararajan said. The wage accord was signed in September 2013 and is effective till 2016.
Foxconn appears to be swayed by political forces. When the DMK was ruling the state, its trade union, LPF, was recognised by the management, and when AIADMK came to power in 2011 the same management went with ATS, CITU officials said.
They said the Foxconn management was actively considering a voluntary separation scheme as business flow has been impacted after the Nokia factory closed. Foxconn was one of the largest suppliers of parts to Nokia and is situated inside the Nokia SEZ.
Calls to Foxconn's management remained unanswered. Foxconn entered India in 2006 following its most important client at that time, Nokia. It makes panels for mobile phone manufacturers in its factory in Sriperumbudur.
In China, where it has more than a dozen factories, labour issues have been dogging it in recent years.