Speaking after a meeting with the representatives of the local employment agency, the work inspection and the Jucu mayor, Stamatin said a part of the employees made redundant might be hired by a furniture firm in Jucu, which needs 300 new employees.

He added that the local employment agency will access EUR10 million in EU funds for job retraining and rehiring.

The funds can be used in collective layoff situations, when the number of people made redundant exceeds 500, said Daniel Don, director of the local employment agency.

Nokia said in a press release Thursday it plans to close its manufacturing facility in Jucu by the end of 2011, citing the need to cut costs and bring efficiency to the business.

The plant will stay open until the end of the year and employees will continue to receive wages until the end of March 2012, employees were told Thursday. Laid off staff will also receive severance payments but the company has not yet given any details about its planned benefit packages.

The local employment agency office in Cluj said the plant’s shutdown will raise the county’s unemployment rate, but it is not expected to exceed 4% from the current 3.3%.

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