Brussels, 22/01/2008 (Agence Europe) - The German economy is in shock after the announced closure of the Nokia factory in Bochum, Germany (EUROPE 9582). There were widespread calls to boycott the company that followed the announced decision that could lead to around 2300 direct and 4000 indirect job losses. German Chancellor, Angela Merkel, as well as the German political class, particularly her minister for agriculture and consumer protection, Horst Seehofer (CSU), her finance minister, Peer Steinbruck, SPD president, Kurt Beck, representatives from the German union (IG Metall: DGB), the European Trade Union Confederation (ETUC) and the anti-globalisation association ATTAC are livid, particularly because the number one mobile phone company is in principle expected to announce this Thursday, global profits for 2007 of €6.8bn. They are therefore calling for a boycott of mobile phones manufactured by the Finnish company, Nokia, as well €88 million in subsidies paid to the group by the Federal German Republic. International press reports said that Nokia has already said that it will not change its decision, whatever happens. Germany is finding this situation even more difficult to tackle because in December 2006 the Taiwanese mobile phone company BEN Q sacked 3300 workers from production sites in Germany (Munich, Kamp-Linfort and Bocholt). In December 2007, the European Commission paid Germany aid from the European Globalisation Adjustment Fund (EGF) (EUROPE 9570).
In the face of such an outcry, European Commission president, José Manuel Barroso, confirmed what was said last week, namely, that the Commission is examining the possibilities offered by the EGF for helping workers who have been victims of this decision. They are also looking at whether the Commission had received any Commission subsidies in the Nokia affair. Certain criteria may apply to get the EGF activated, such as the fact that more than 1000 workers are affected or changes in the structures of world trade, for example. Katherina von Schnurbein, the spokesperson for the Commissioner for social affairs, Vladimir Spidla, said that relocation was not part of the equation that involved criteria on countries relocating to EU third countries.
President Barroso also pointed out that it was up to the member state that had been the victim of relocation to provide the European Commission (which will then decide) with a dossier containing the different reasons why it should benefit from the EGF. The French daily, “La Tribune”, revealed that the Commissioner for industry, Günter Verheugen, had said that the Nokia case, “gave rise to reflection about policy on state subsidies””.
The Deputy Secretary General of the European Trade Union Confederation (ETUC), Reiner Hoffmann indicated in a statement that this announcement illustrated the urgent need to review the European directive on works councils (EWC), “In particular, it must be guaranteed that companies cannot ride roughshod over European and national workers' rights without sanctions. Furthermore, there must be guarantees that no layoffs or transfers can be carried out without thorough, prior information and serious consultations with the workers' representatives and their trade unions”. Hoffmann therefore welcomed the Commission's introduction of the revision of the EWC directive, which proved, “that it is not only concerned about a better business environment but that it also has the power to strengthen workers' rights across Europe”. (G.B.)