Former workers of mobile phone producer Nokia in Romania and Finland are to receive EUR 8.2 million in European funding to help them after being made redundant. Nokia closed down its factory in Romania, moving production to Asia, and money from the European Globalisation adjustment Fund (EGF) will go to 1,416 Romanian workers who lost their jobs as a result.

The money granted former Nokia employees by the European Commission is the biggest single chunk of the EUR 24.2 million in payments announced today (March 22 ). “The EGF is an effective tool in supporting workers laid off as a result of changing world trade patterns. It has also proven its worth in cases of lay-offs resulting from the economic crisis,” said European Commissioner for Employment, Social Affairs and Inclusion László Andor. He added that the EC welcomes the decision of the EU Member States to continue the scheme between 2014 and 2020.

Around EUR 2.9 million of the total was originally earmarked for the Romanian workers, which Commissioner Andor said “aims to help the former Nokia workers adapt their skills, find new jobs and build a better future.” The EC detailed a wide-range of support for the 1,416 former Nokia employees expected to take part in the scheme – information, counseling and vocational guidance; vocational training and training towards certification; entrepreneurship promotion and financial assistance for business start-up; mentoring and post-hiring support, as well as several types of allowances such as job-search, transport and internship allowances.

Redundant employees in Austria, Denmark, Italy, Spain and Sweden are also among the beneficiaries of the EUR 24.2 million in payments announced by the EC today.

Finnish mobile phone manufacturer Nokia decided to close down its factory in Romania in fall 2011, leaving around 2,200 unemployed. The company relocated production to Vietnam, which offers lower human resources costs. Then in January 2012, household appliances producer De’Longhi agreed to buy the Nokia production facility in at Jucu, in Cluj county.

Liam Lever, liam@romania-insider.com

photo source: sxc.hu