Nokia says that it has secured key elements of a reconciliation of interests and social plan for employees affected by the plan to close its Germany handset factory at Bochum. The EUR200 million (US$315 million) package calls for Bochum to be shut down by June 30, after which Nokia will establish a transfer company for affected staff for one year.
Both parties have also reached agreement on terms related to employee issues in the cases of the planned divestment of the Line Fit Automotive Business to the former business unit head, Razvan Olosu, and Equity Partners GmbH; and of the Bochum based core software R&D entity to Sasken Communication Technologies. Successful divestments would enable employment for approximately 300 staff in total, an important step towards the joint aim of finding alternative employment for Nokia's Bochum staff.
While production at Bochum will cease by end-June 2008, Nokia will continue to have a strong presence in North Rhine-Westphalia and Germany with a major sales and marketing unit in Düsseldorf and a strong representation through a devices R&D team in Ulm. Nokia is the only major mobile device maker with an R&D presence in Germany, and its footprint in software is growing with the acquisitions of Gate5 and Loudeye and the pending purchase of Navteq, which has personnel in Frankfurt.
The final reconciliation of interests and social plan are expected to be signed in the next few weeks.
Nokia will comment further on the financial costs in connection with its first quarter report due on April 17.
Posted to the site on 8th April 2008
Posted to: www.cellular-news.com/story/30389.php