Nokia India goes on strike - Wikimedia Commons

Nokia's factory at Sriperumbudur, close to Chennai, has been hit by industrial unrest.

The Business Standard said that production was hit after workers went on strike after they sought more pay and the re-instatement of the jobs of 60 people who were suspended earlier this year.

The workers, represented by the Nokia India Employees Progressive Union, failed to get agreement on a wage settlement earlier this week.

Nokia, according to the report, said the wages it paid its employees were among the best in the region.

The Nokia factory is in one of India's Special Economic Zones (SEZ) and is the biggest exporter in India. The factory is Nokia's 10th mobile device factory worldwide. It hires 8,000 people, 70 percent of whom are women. The factory exports to over 50 countries and doesn't cater to the domestic market.

The management has offered to re-instate the 60 employees it suspended in January for what's described as "serious misconduct", so the sticking point appears to be the wages Nokia's paying. The Business Standard is here.