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Nokia Agrees to Pay 200 Million Euros to Bochum Workers

The Bochum plant will still be shut down

By Florin Troaca, Communications News Editor

9th of April 2008, 00:06 GMT

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After announcing the closing of its Bochum (Germany) factory, Nokia had some serious problems with the German authorities, which sustained the Finnish company did not fulfill

all its duties towards the German state and the Bochum workers.

Today, Nokia announced it has reached an agreement with the Bochum employee representatives. This agreement includes a "200-million-euro package" offered to the 2,300 employees that will be affected by the factory's closing. Moreover, Nokia will find a "transfer company" where the employees will be able to work for one year after the Bochum plant's shut down.

"As we said in January when we started the discussions about closing Bochum, Nokia has agreed on a fair and responsible social plan," declared Veli Sundb�ck, Executive Vice President of Nokia and Chairman of the Supervisory Board of Nokia GmbH. "We are well aware that closing the site is painful for all affected employees and their families. As we have clear responsibilities to our employees in this kind of difficult situation, it was our special concern from the start to compensate the loss of the jobs in a respectful and fair manner."

Gisela Achenbach, head of the Bochum works council, said: "We achieved our goal, which was to reach a satisfactory agreement for our members that is in line with the best German agreements. Furthermore, additional payments will take into account the specific situation of families and severely disabled persons."

Following the agreement between Nokia and the employees, the Bochum factory will be closed as planned, on June 30 2008. The production from the German factory is being transferred to the new Nokia plants in Romania and Hungary, where labor costs are significantly lower. The plant from Romania is already operational, since February 2008, and by the end of 2009, about 3,500 people should be able to work there.

TAGS:

Nokia | Bochum | Germany | pay | close

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