Romania To Access EU Funds To Assist Nokia Plant's Redundant Personnel

Romanian Labor Minister Sulfina Barbu will be in Cluj county on Thursday to discuss accessing EU funds for the Nokia plant's employees with the County Employment Agency (AJOFM) and the company's management, Prime Minister Emil Boc announced.

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Imaginea articolului Romania To Access EU Funds To Assist Nokia Plant's Redundant Personnel

Romania To Access EU Funds To Assist Nokia Plant's Redundant Personnel

The Government intends to obtain funds through the European Globalization Adjustment Fund (EGF) to support the employees after the plant closes down. Romania must put up about 30-35% as co-financing to access the Fund, Boc said.

The unionists at Nokia's plant in Jucu, Cluj put off negotiations on severance pay until Thursday, when they will meet with Minister Barbu and AJOFM officials, Nokia Metal union leader Valentin Ilcas told MEDIAFAX.

On Monday, the management and unionists started negotiations on a severance package for the 2,200 employees who will be made redundant by the end of the year. A new round of negotiations had been scheduled for Wednesday.

Ilcas has confirmed that the collective work contract in effect at Nokia's plant does not provide severance. He pointed out that Nokia applies an aid program when it shuts down facilities, to support employees made redundant.

Nokia last week announced it was closing 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.

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