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Benq fallout could hit Nokia too

Its networking venture with Siemens, that is
By Tony Dennis
Mon Nov 06 2006, 09:54
THE FALLOUT from the continuing implosion of the Benq/Siemens handset division could affect Nokia. A German trade union may disrupt Nokia Siemens Networks.

The IG Metall union is far from happy about recent events in the former Siemens handset division which became Benq Mobile. According to recent reports around two thirds of the division's German workers have already lost their jobs.

The German company was forced to file for bankruptcy protection back in September [2006] after its Taiwanese owners decided to stop providing funding.

This action has affected Benq's operations in the UK which is reportedly down to 14 people out of the original 30 employees. The UK depends on Germany for its handset stocks.

According to a report in the FT, IG Metall is threatening to disrupt further disposals from Siemens former Enterprise Networks division and that uncertainty could spread to the 50:50 networks joint venture with Nokia. µ

See Also
Nokia and Siemens merge networks

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