German media reports impending settlement in Nokia-Bochum dispute

Nokia dismisses reports as premature

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Reports in the German media suggest that a settlement is close in the dispute between the mobile telephone giant Nokia and the German state of North-Rhein Westphalia.
     The German weekly Focus reports that Nokia is paying EUR 30 million into a special Bochum fund, in return for an agreement by North Rhein-Westphalia to drop its demand for the full repayment of EUR 60 million that it had given Nokia in industrial subsidies in the past.
     
The Finnish-run company announced early this year that it was shutting down its mobile telephone factory in the city of Bochum in June, sparking massive protests. More than 2,000 people have been employed by the Bochum factory.
     North-Rhein Westphalia state representatives said on Sunday that negotiations with Nokia have been very constructive, but that no solution had yet been reached.
     Nokia told Helsingin Sanomat on Sunday that while talks have indeed been constructive, rumours of an agreement, and of specific sums of money are "premature".
     "Focus is ahead of itself. The discussions are continuing" Nokia said.
     Nokia also reiterated the view that North Rhein-Westphalia is not in a position to dictate the amount of money that is to be paid. "We continue to feel that we have fulfilled our duty with respect to employment."
     
The announcement that Nokia was planning to close the factory led to intense protests in Bochum and surroundings, and to calls around Germany to boycott Nokia products. The economic publication Euro am Sonntag said that Nokia's market share in Germany had fallen from 41% to 37% in the first quarter. The journal nevertheless added that Nokia's market share tends to fluctuate, depending on the introduction of new handset models, and other factors.
      Nokia has also promised its workers in Bochum compensation amounting to EUR 200 million. The size of the compensation will depend on the employee's age, gross income, and length of employment. For instance, a 42-year-old professional, who has been with Nokia for 13 years, will be entitled to severance compensation in the amount of about EUR 83,000.


Previously in HS International Edition:
  Anti-Nokia sentiment unites Ruhr region in massive protest (23.1.2008)
  Nokia shutting down plant in Germany, moving manufacture to Romania (16.1.2008)
  Nokia offers Bochum workers massive social package (9.4.2008)
  Merkel: Germany unlikely to demand that Nokia pay back R&D investment subsidies (19.2.2008)
  Nokia´s Kallasvuo apologises to Germans (25.1.2008)

Links:
  Focus (in German) "Nokia kauft sich mit Spende frei"

Helsingin Sanomat