Nokia’s migration shows Brussels’ failure
By Herbert Schui
Published: February 10 2008 19:05 | Last updated: February 10 2008 19:05
Nokia, the mobile phone company, is standing by its decision to close its factory in Bochum, western Germany. About 2,300 employees are affected along with, according to trade union estimates, up to 2,000 jobs at suppliers and subcontractors. The Finnish company’s decision has provoked indignation. The reasons for the public outrage are obvious: Nokia earns €90,000 a year from each production worker – operating profit at Bochum runs at an annual €134m. Nevertheless, production will now be shifted to Romania.
In the public’s eyes, that is greed. The Bochum management had proposed, by means of a €14m investment, to make production so profitable there as to match that of Nokia’s plant in Hungary – even though gross hourly wage costs are €28.70 in Germany compared with only €6.90 in Hungary. But that is not all: the North Rhine-Westphalia government has paid €60m in investment aid and there has been at least €10m in federal research support.
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