Feeds

Nokia coughs up €200m over axed German workers

Agreement on transfer company

High performance access to file storage

Nokia will pay €200m to compensate workers for the closure of its mobile phone plant in Germany. It will also establish a transfer company to help staff for at least one year. Some 2,300 employees will lose their jobs at Bochum.

Nokia was widely critisised for the closure of its plant in Bochum and infuriated many German unions and politicians. Last month, Germany's western state of North-Rhine Westphalia (NRW) told Nokia to repay all its subsidies plus interest by 31 March or face legal action. It is unclear whether NRW will back down.

Jürgen Rüttgers (CDU), Minister-President of North Rhine-Westphalia, said he welcomed yesterday's news.

Nokia executive vice president and supervisory board chair Veli Sundbäck said in a statement: "Nokia has agreed on a fair and responsible social plan.

"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."

Nokia will comment further on the financial costs in connection with its Q1 report due on 17 April.

While production at Bochum will cease by the end of June 2008, Nokia says it will continue to have a strong presence in Germany with a major sales and marketing unit in Düsseldorf and 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. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.