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Nokia Settles With German Workers; Each To Receive $129,090 In Severance

By Dianne See Morrison - Wed 09 Apr 2008 06:03 AM PST

Nokia (NYSE: NOK) has agreed to pay workers 200 million euros ($315 million)--130 million euros ($205 million) more than it originally offered--in compensation for the closure of its factory in Bochum, Germany. The 2,300 staff will split 185 million euros ($292 million), with each worker receiving an average of 80,000 euros ($129,090) in severance pay, the FT reports. The remaining 15 million euros ($24 million) will be spent on a transfer company to help the workers find new jobs. The Bochum closure, announced in January, prompted a wave of criticism in Germany from both trade unions and politicians. Finance minister Peer Steinbrück called Nokia’s decision to abandon the Bochum plant for Romania—where wages are a tenth of Germany’s--"caravan capitalism.” The handset maker is still hammering out an agreement with the German state of North Rhine-Westphalia, where Bochum is located, which is demanding that Nokia give back the 60 million euros ($95 million) in investment subsidies that the state granted it to open the plant.

Posted in: Companies, Nokia, Countries, Europe, Germany


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Rafat Ali
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Staci D. Kramer
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Tricia Duryee
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Dianne See Morrison
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Robert Andrews
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