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Thursday, September 29, 2011

Nokia cuts 1900 jobs by closing factory near Cluj, Romania - Who's fault is it?

Well, Nokia announced that it will close the Romanian factory near Cluj, by the end of the year. The people who lost their jobs will get a compensatory retribution for 3 months pay. The syndicate from the Romanian factory have no one to thank to by their own government who cut all fiscal facilities for every major manufacturer that invested in this country including Nokia, Ford and many, many more companies.

By adopting the new Labour Code this year, the government practically allows any employer to fire any employee at their disposal. The biggest problem is not this, because every company in it's sane mind, wouldn't fire hard working people.

The main problem is that the once the world wide financial crisis hit, the Romanian government has cut all fiscal facilities that were granted to the foreign investors, including Nokia.

So suddenly Nokia found itself paying 16% more for the same profit, which inevitably leads any company, not just Nokia to trying to find cheaper workforce. That cheaper workforce is found in Asia, and so another big company leaves Romania. Maybe if Ford will leave too, the government will come into their senses and try to attract foreign investors again.

So, is this Nokia's fault? In my opinion, No!