The council decided to set up a commission to analyze the contract local authorities signed with Nokia to determine if they can recover a part of the sum invested in the plant, estimated at about EUR20 million. Tise said the commission will be summoned Thursday.
“We will also engage in negotiations between unions and Nokia Romania representatives regarding severance pay for employees to be made redundant. Discussions will focus on the severance package, considering the collective work contract they signed does not state the granting of severance payments,” said Tise.
He highlighted the commission will analyze the contract to see if local authorities can obtain compensation for the EUR15.5 million they invested in the plant.
On Monday, Nokia representatives and unionists started negotiations on severance package for the employees who will be laid off. They will meet for a new round of negotiations Wednesday.
Employees who wished to remain anonymous told MEDIAFAX Tuesday the collective work contract union leaders at Nokia’s local plant signed at the beginning of the year does not state the granting of severance payments in the event of collective layoffs.
They said the collective work contract does not stipulate any severance payments because no one anticipated the plant would be shut down until at least 2014.
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.