Nokia (NYSE: NOK) and
Bochum employee representatives have agreed on key elements of a
reconciliation of interests and social plan for employees affected by the
plan to close the site, achieving the target set for the negotiation by
both parties: a fair, reasonable and satisfactory solution for all. The
200-million-euro 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.
"As we said in January when we started the discussions about closing
Bochum, Nokia has agreed on a fair and responsible social plan," said Veli
Sundback, 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."
"We achieved our goal, which was to reach a satisfactory agreement for
our members that is in line with the best German agreements," said Gisela
Achenbach, head of the Bochum works council. "Furthermore, additional
payments will take into account the specific situation of families and
severely disabled persons."
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 Dusseldorf 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.
Nokia
Nokia is the world leader in mobility, driving the transformation and
growth of the converging Internet and communications industries. We make a
wide range of mobile devices with services and software that enable people
to experience music, navigation, video, television, imaging, games,
business mobility and more. Developing and growing our offering of consumer
Internet services, as well as our enterprise solutions and software, is a
key area of focus. We also provide equipment, solutions and services for
communications networks through Nokia Siemens Networks.
SOURCE Nokia Corporation
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