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Nokia pays $314 million to shut German plant

Being nice to the workers
Wednesday, 9 April 2008, 08:54

MOBILE phone outfit Nokia has agreed to spend $314 million to try and soften the blow from its closure of a factory in Germany.
Nokia wants to close its plant in Bochum in the industrial Ruhr region at a likely cost of 2,300 jobs.

However the company was slammed by German unions and politicians when it announced the plan. The state government in North Rhine-Westphalia demanded that Nokia return investment subsidies paid in the late 1990s, plus interest a total of nearly $94 million.

Nokia didn’t want to be bothered by lots of commissions of enquiry and court actions and wanted the plant to shut down by June 30.

The agreement to set up a "transfer company" to help affected staff for one year means that the plant can close as planned.

Nokia has promised to pay out more to take into account the specific situation of families and severely disabled persons.

Nokia Chief Executive Olli-Pekka Kallasvuo said that that the factory makes six percent of Nokia's handsets but accounts for 23 per cent of its global labour costs. µ

L'Inq
AP

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Comments
not very accurate

very complex topic.

Nokia are blood evil, its as simple as that!
The investigated and the plant make good profit and had no issues with staying in the black. 
The reason why they are going to Romania is that there staff is turing 40 soon and ost have worked they since the plant opened. Nokia offers its workers great health benefits, pay rises etc.
you close a plant you do not have to do any of this. now they go to romania... and leave there too in 13 15 or so years

posted by : Julian the german, 09 April 2008 Complain about this comment
not that bad

Please Julian. We've lost plants of thousands of workers recent years because of globalization (India, China,.. anyone?) but still we don't whine about it. I think you can manage to find a job for 2000 people in a country of 82 million people.

posted by : Pauli the Finn, 09 April 2008 Complain about this comment
Nokia sounds like a wicket company

~They form a partnership, and then dismissing a batsman, by being bowled, run out, stumped or hit wicket, his wicket needs to be put down. What Germany needs are better Laws of cricket!

posted by : ₭arlsbad the idiot, 11 April 2008 Complain about this comment
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