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bochum,business posts

Nokia to pay German state ?1.3 million to settle Bochum dispute

by Darren Murph posted Jul 28th 2008 @ 10:24AM

Germany wanted $6.2 million in research subsidies back from Nokia, and in addition to the "tens of millions" that the company has already relinquished after the highly-disputed Bochum plant closing, it'll be coughing up another €1.3 million ($2.04 million) to hopefully close the door on the matter. Said payment will be addressed to North Rhine-Westphalia, which was quite angry after the handset maker decided to hack 2,300 jobs from Germany and relocate operations to Romania for "lower labor costs." The sum here is in addition to the €20 million "Growth for Bochum" foundation that the outfit started, but apparently that show of goodwill didn't really change the hearts of those already bitter.

[Via PhoneScoop, image courtesy of Reuters]

Nokia settles with German unions for $314M

by Nilay Patel posted Apr 8th 2008 @ 4:17PM

Nokia's decision to close that factory in Bochum, Germany and move its operations to a cheaper site in Romania might lower costs in the long run, but for now things seem decidedly in red: Nokia and the German unions who represented the 2,000 laid-off workers at the plant have agreed to a €200M ($314M) settlement, which will probably end the demonstrations and calls for boycotts that have been going on. Of course, that's on top of the $92M (plus another $6.2M) the German government wants back in grants and tax breaks for subsidizing the plant, but what's another hundred mil between friends?

[Via Textually.org; image courtesy of Reuters]

German state after $92 million in subsidies, interest from Nokia

by Darren Murph posted Mar 11th 2008 @ 5:38PM

Looks as if Nokia's going to be using a portion of that gigantic profit it raked in during Q4 to appease NRW.Bank -- unless a meeting it hopes to establish within the next few days changes matters, that is. Apparently, a German state has "asked" the handset maker to hand back government-issued subsidies (with interest, no less) that it received to build a cellphone factory in Bochum which it now plans to close. In sum, Nokia's looking at a tab of $92 million, as the folks in the industrial Ruhr region are none too pleased about what will likely result in the loss of some 2,300 jobs. Purportedly, the cash is due by March 31st, and if Nokia refuses to comply, the bank has stated that it will "take legal action to secure payment." Them's fightin' words there.

Nokia boycott urged by German unions

by Darren Murph posted Jan 17th 2008 @ 1:30PM

So apparently, that whole "plan to shut down a Bochum Nokia plant" didn't exactly sail over everyone's heads, particularly not in Germany. Reports are now flowing out that unions in the nation are taking it upon themselves to urge consumers not to purchase wares from the firm, with Dietmar Muscheid, regional head of the Confederation of German Unions (DGB), being one of the most vocal. Muscheid went on to state that "whoever buys a cellphone today should think about the choice they are making and what catastrophic consequences the company's actions in Bochum will have for thousands of workers." 'Course, the EU has already proclaimed that Nokia won't be getting a dime in relocation (to Romania, supposedly) aid, but unspecified government officials are reportedly lined up to speak with suits from the handset maker later this week to "discuss the plant's future." Whether or not all this commotion will actually change any minds, however, remains to be seen.