RSSGermans outraged over Nokia cell phone plant shutdown
By Jacqueline Emigh | Published January 23, 2008, 4:27 PM
Upset over the loss of 2,300 jobs in Germany, 15,000 local residents have staged a street demonstration over Nokia's plans to shut down a factory and move production to budget-wise Romania. A boycott is possible, and government leaders claim Finnish-based Nokia should now give back the considerable amount of subsidy money it's gotten from Germany.
Angered over Nokia's plans to close a cell phone manufacturing plant in Germany, 15,000 local residents have marched through the streets, with some politicians calling for a boycott of Nokia products and demanding reimbursement of a big chunk of more than 80 million euros ($120 million) in subsidies paid by Germany to Nokia over the past 20 years.
Justifying its action on the grounds of lower wage costs, Finnish-based Nokia -- the world's largest mobile phone maker -- is moving production from the city of Bochum in the Ruhr region of Germany to two towns in Romania: Cluj and Jucu.
According to accounts in the German press, some major government officials have implied that Nokia might now be getting a subsidy from the European Union to pull up stakes and go to Romania.
State premier Jurgen Ruttgers has accused Nokia of behaving "like a subsidy locust."
Among all countries belonging to the EU, Germany reportedly contributes the most funds.
In response, EU Commissioner Gunter Verheugen has declared that subsidies should no longer be paid to attract companies to a region.
Meanwhile, EU Commission President Jose Manuel Barroso has hinted that the EU might be willing to provide financial assistance to those impacted by the job losses.
Kurt Beck, head of Germany's Social Democratic Party (SPD), has suggested rather strongly that a Nokia boycott might be in order.
"We can all get together [and] make it clear that we're not going to let ourselves be misled. Germany has 82 million consumers," said Beck, who also told a German newspaper that he's launching a personal boycott by not using his Nokia cell phone any more.
During a protest march in Bochum this week, a labor union leader who heads up a union called IG Metall told demonstrators that Nokia managers should reverse their decision "if they have a shred of decency."
But Nokia officials have reportedly countered that labor costs are 10 times higher in Germany than Romania.
German workers and leaders are particularly incensed that Nokia is abandoning its plant in Germany at a time when the company is focusing increasingly on sales to high-growth emerging markets in Asia, the Middle East, and Africa.
Nokia officials reportedly met on Monday with representatives of the Bochum plant and German unions, with further talks planned.
Nokia spokespersons were not immediately available for comment.
That's the problem with China, everyone think that the world companies must search low labor cost for production so plants in developed countries where people is well paid...are moving to countries where the labor is less well paid. I don't like that, I'm capitalist but if we can't stop that: Come to Colombia, we need jobs and people work for a minimum salary of USD 300/month.
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|Why do so many US citizens believe that "America is so bad that people are lining up to come here" is a suitable response to an argument? People are lining up to get in the EU too..some die trying! Europe isn't perfect and has lots of problems but most of its citizens know that. US citizens often don't seem able to acknowledge the same thing about their own country. The US would be a lot easier to like if it just for once had a little humility.
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|I know nothing of the EU but American companies fold up and move over the border to Mexico every day. No one here stages protests and demands compensation because a company is trying to increase it's margins.
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|No, the huge problem is the Unions in Europe. Its ridiculous, companies are so afraid to fire people that it has come to a point where they just chose not to hire new employees, and reuse employees even if they are inefficient. Go to Europe and all you see are just protest and demonstration about some company firing someone.
Firing weeds out the bad people and allows companies to hire the best and brightest without reason to be afraid.
EU will see more and more of this happening until companies either pull out or there will be a clash between unions and companies. It will only get worst. This is only the tip of the iceberg.
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|So much BS i cant even begin to decipher it all.
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|Firing weeds out the bad people???? Not always the case, you can't just do whatever you want and fire people at will, I'll agree that maybe some labor unions have too much to say, it doesn't mean that should be able to just fire people on the spot without any regards for thier situation like in the US.
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|So the EU wants to subsidize the German residents because they subsidized the move to Romania after Germany subsidized Nokia to locate there. Why not give up any pretenses to a free market and just declare the Socialist EU Republic?
And I agree with billweh that our own Democrats would think it was a swell idea. It is only the mis-management of our own economy by the Republicans that gives the Dems any credibility at all.
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|Subsidizing corporations isn't a sign of socialism - it's a form of corporatism. At least you could get your terminology straight if you're gonna rant about it.
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|The EU was a big mistake to start with and now Germany is finding this out first hand.
When you put a socialist/communist/tranzi government together, the thing they do is insure that no one (except the people in charge that is) has the money. So Germany's been a good little comrade and has been giving to the party - now their surprised when the party stabs them in the back.
The worst part, is this is what our own Democratic party is trying to do here. Turn us into EU-West. [shudder] Be afraid - be VERY AFRAID!
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|Agreed
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|It may be a mistake but it's the future. the EU will only get stronger.
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|The EU should go bye bye.
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|how exactly is the Democratic party doing any of this?
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|i think you stupid ignorant americans should go bye bye, you know very little or nothing of the outside world.
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|Ah intitlement. We will take from those that have and give to the ones that don't want to do anything. Socialists at the best.
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|Not sure how you knew he was American, but I guess you do to make a statement like that.
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|It's better than the Republicans who take from the middle class and give it to the rich who don't deserve it.
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|Here's how: Uneducated, ignorant, idiot robot answer = must be USA
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|what do you know about EU??? Like US labor laws are any f.... good. Whatever. At least here they care about workers not enlslave them.
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|Wow what a load of s***. Hate all you want but the rich are the ones that run the world. They are the ones that decide when to hire more people, expand a business or move out. Keep taxing them and they have no interest in expanding since they will be penalized. Hate all you want but that is reality. As long as there are people there will be poor. You will never stop poverty. To many people want a free ride and feel that they are owed something. Get off your lazy ass, get an education and make money. You have no clue what you are talking about. The entire thought process of the democrat party is a bunch of s***. If you think health care is expensive now wait until it is free with socialized medicine. The concept looks great on paper but is a miserable failure.
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|America is so bad that people are lining up to come here. That makes sense.
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|I already have a paying job. The rich should be taxed just as heavily as the working middle class. Nobody deserves a free ride whether it's the middle class or the rich. As for a government run health care system, that is one of the best and smartest ideas ever conceived. Countries in Europe and Canada (and anywhere else with government run healthcare) have the very best and affordable healthcare in the world because those countries are actually interested in providing quality healthcare for everyone and not just making money for profit like private insurance companies are.
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|wow...that is profound.
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|Don't think he/she was speaking directly to you..oh well - Fact: between 1996 and 2000 the United States accounted for 63% of all medical patents worldwide even though the U.S makes up only 5% of the population. Yeah, lets get crap healthcare for free (when you can get in) and slow down medical advances in the process. Good idea.
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|Add to that the thousands of or maybe even hundreds of thousands of people that will lose their jobs in the insurance industry. Then the same with research no reason to research since the money is not there. Funny he mentions Canada and how many Canadians take medical vacations to the states and pay for their health care. I guess the Canadians have a superior plan there. Look at Kaiser now that is more like what we will get. Then he mentions no one gets a free ride the middle class or the rich but leaves out the poor that many live off the free ride. Entitlement needs to go away or the people as a whole will suffer. He also mentions that the rich don't pay their fair share, last time I looked the rich paid like 90 something percent of the tax, seems fair to me. I am amazed at how some dems so want to get everyone to rely on entitlement to further their agenda. In reality they could careless about the people.
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