Romanian Unionists, Nokia Representatives Start Negotiations On Severance Payment

Nokia Metal union leader Valentin Ilcas told MEDIAFAX the meeting on Monday is a 'preliminary" one and the negotiation process will last until the end of October.

Nokia said in a press release Thursday it plans to close its manufacturing facility in Jucu by the end of 2011, citing the need to cut costs and bring efficiency to the business. The company said employees will continue to receive wages until the end of March 2012.

Nokia started mobile phone production at the Jucu plant in February 2008, following an investment of EUR60 million.

Earlier this year, the company said it was shutting down its Research and Development Center in Cluj, shedding about 120 employees. Nokia said at that time its plans to align its global workforce and consolidate site operations target to reduce its Devices & Services non-IFRS operating expenses by EUR1 billion in 2013, compared to 2010.

Nokia was Romania's second-largest exporter last year, after car maker Dacia. Between January and September 2010, the company had exported products worth a total EUR750 million.

The company's sales in Romania rose to 6.7 billion lei (about EUR1.5 billion) last year, from RON4.3 billion in 2009. In 2010, the company posted revenue of RON7 billion and a net profit of RON181 million.

(EUR1=RON4.3222)

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