The Madras High Court today ordered status quo on removal of machinery by FIH India private Limited, formerly known as FOXCONN India Private Limited, from its closed Sriperumbudur unit in Kancheepuram district, as alleged by some workmen in their petition.
The court also ordered status quo on the issue of approving the closure of the unit by the state government.
Justice C S Karnan issued notice to the state government, Labour Welfare Department and FIH India Private Limited, returnable by June 15.
According to the petitioners, the Sriperumbudur unit, where about 3000 employees were working, was running on profit.
They alleged that the company’s name was changed for some extraneous reasons and their livelihood denied in the name of closure. They submitted it was closed on February 10 without any mandatory procedures under the Industrial Disputes Act.
They further alleged that the company asked them and other workmen to receive the severance compensation by a letter dated February 27.
The petitioners said relieving them from their service was contrary to the provisions of the Industrial Disputes Act and the closure against Section 25-O of Industrial Disputes Act.
They submitted that the company was being run by the very same management in places in other states including Andhra Pradesh. They alleged that the management was trying to get permission from the Tamil Nadu government to shift all machinery from its Sriperumbudur unit.
The petitioners prayed the court to direct the state government not to allow the company to remove or shift or alienate the machinery from its Sriperumbudur unit.
They also sought a direction to the state government not to approve the closure of the company.
