difenbaker
01-18-2008, 08:00 PM
Call to boycott Nokia for closure of factory
Published: Saturday, 19 January, 2008, 02:16 AM Doha Time
BERLIN: German Finance Minister Peer Steinbrueck said yesterday that Nokia’s decision to close a plant in Germany was an example of “caravan capitalism”, and that the firm was risking its reputation.
Nokia, the world’s top cellphone maker, said earlier this week it was closing the plant in Bochum because it was not competitive and was moving production to Romania.
The company’s plans to cut up to 2,300 jobs have fuelled political and public outrage ahead of key state elections later this month.
“This is the expression of a caravan capitalism which systematically undermines support for this economic and social system. People are losing confidence and that is extremely dangerous and of political importance,” Steinbrueck, a Social Democrat, told German radio.
Steinbrueck said it was unlikely the Finnish company would reverse its decision to move away from the state of North Rhine-Westphalia (NRW). “I don’t think we should raise any false hopes. But I can understand the outrage,” he said.
A Nokia spokeswoman in Helsinki declined to comment on the matter and referred questions to a Nokia representative in Germany who was not immediately available.
Nokia says labour costs in Germany are nearly ten times those in EU-newcomer Romania, where it plans to move most of the production. But Steinbrueck said Nokia’s argument did not hold weight.
The company said earlier this week that its decision to close the Bochum plant had been well thought through and that it had no plans to reverse it.
But German government spokesman Thomas Steg said yesterday that talks were needed with the company.
Some politicians have argued that Nokia should repay German subsidies it received in the latter half of 1990s, but government officials have noted that the company has invested much more than it received.
When questioned on this issue, Steinbrueck said it appeared that the NRW state government could be justified in seeking redress on the issue of whether Nokia fulfilled the conditions for subsidies in the region.
A deputy economy minister for NRW said yesterday the state may have good grounds for pushing Nokia to return up to 40.8mn euros ($59.80mn) of subsidies which were given on condition that the firm employed 2,800 people at the plant.
“They are arguing that wage costs are too high, when wage costs count for under 5% of their overall costs. They must know it’s not convincing,” Steinbrueck said, adding that people would lose trust in the company.
The head of the Confederation of German Unions (DGB) in the southwest state of Rhineland Palatinate on Thursday called for a boycott of Nokia goods.
more here:
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=196569&version=1&template_id=48&parent_id=28
related links:
http://www.stuff.co.nz/4364547a28.html
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Published: Saturday, 19 January, 2008, 02:16 AM Doha Time
BERLIN: German Finance Minister Peer Steinbrueck said yesterday that Nokia’s decision to close a plant in Germany was an example of “caravan capitalism”, and that the firm was risking its reputation.
Nokia, the world’s top cellphone maker, said earlier this week it was closing the plant in Bochum because it was not competitive and was moving production to Romania.
The company’s plans to cut up to 2,300 jobs have fuelled political and public outrage ahead of key state elections later this month.
“This is the expression of a caravan capitalism which systematically undermines support for this economic and social system. People are losing confidence and that is extremely dangerous and of political importance,” Steinbrueck, a Social Democrat, told German radio.
Steinbrueck said it was unlikely the Finnish company would reverse its decision to move away from the state of North Rhine-Westphalia (NRW). “I don’t think we should raise any false hopes. But I can understand the outrage,” he said.
A Nokia spokeswoman in Helsinki declined to comment on the matter and referred questions to a Nokia representative in Germany who was not immediately available.
Nokia says labour costs in Germany are nearly ten times those in EU-newcomer Romania, where it plans to move most of the production. But Steinbrueck said Nokia’s argument did not hold weight.
The company said earlier this week that its decision to close the Bochum plant had been well thought through and that it had no plans to reverse it.
But German government spokesman Thomas Steg said yesterday that talks were needed with the company.
Some politicians have argued that Nokia should repay German subsidies it received in the latter half of 1990s, but government officials have noted that the company has invested much more than it received.
When questioned on this issue, Steinbrueck said it appeared that the NRW state government could be justified in seeking redress on the issue of whether Nokia fulfilled the conditions for subsidies in the region.
A deputy economy minister for NRW said yesterday the state may have good grounds for pushing Nokia to return up to 40.8mn euros ($59.80mn) of subsidies which were given on condition that the firm employed 2,800 people at the plant.
“They are arguing that wage costs are too high, when wage costs count for under 5% of their overall costs. They must know it’s not convincing,” Steinbrueck said, adding that people would lose trust in the company.
The head of the Confederation of German Unions (DGB) in the southwest state of Rhineland Palatinate on Thursday called for a boycott of Nokia goods.
more here:
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=196569&version=1&template_id=48&parent_id=28
related links:
http://www.stuff.co.nz/4364547a28.html
:(