Finish telephone company Nokia has decided on a smaller compensation package for the employees of the soon-to-be-closed factory at Jucu, Romania, than what the employees had asked. From April 2012, most of the employees will receive three compensation salaries and a Nokia 500 smartphone (in picture) - the model that was produced at Jucu, while senior employees will get seven or eight compensation salaries and the same smartphone.

The employees union had asked for 20 to 30 compensation salaries for the laid off workers, but Nokia negotiated it down.

Nokia will thus pay around EUR 523 to most of its employees, while senior workers will get between EUR 1,200 and EUR 1,400. The Nokia 500 smartphone produced at Jucu costs around EUR 165 on the market. In addition, Nokia will give RON 200 as Christmas bonus (around EUR 47), while a EUR 500 budget will be available to those who want to start their own  businesses.

The average gross salary for most employees at Jucu is of RON 1,000 (around EUR 240).

The employees unions have not protested against the result of the negotiation with Nokia. Their representatives have actually said this was the most advantageous package they were able to obtain.

Nokia's production will be transferred from Romania to Vietnam, in a factory that will cost EUR 200 million to build. The salary cost of employees involved in production in Vietnam if EUR 71, less than half the one in Romania.

editor@romania-insider.com