The European Commission has made a new proposal to grant EUR 2.9 million to Romania,  from the European Globalization Adjustment Fund, to support return to the labor market of 1,416 laid off employees after Nokia closed down its factory in Romania, according to Mediafax.

"Mobile production patterns at global level change with the relocation of production by European companies closer to fast-growing emerging markets, which are now in Asia. This proposal for about EUR 3 million from the Globalization Fund intends to help former employees Nokia to adapt skills, to find new jobs and to build a better future, "said employment commissioner, social affairs and inclusion, László Andor.

The estimated cost for helping the former employees from Nokia Romania and one of the company's supliers, is EUR 4.5 million, out of which EUR 2.9 million represents the European Fund contribution. The European Council expects 1, 416 out of 1,904 former employees to participate at the financed programs.

Funds will be used to provide services within the transition center “From JOB to Smart JOB”, such as information, counseling and vocational guidance, vocational training and obtaining certifications, promoting the entrepreneurship and financial assistance for business launch, post-employment support, and various types of benefits, such as job-search, transport and internship.

The main reason for the dismissals is the transfer of the assembly of mobile phones to countries from Asia, as China, South Korea, Vietnam and India. Production of components and subcontracted work were previously transferred also outside of Europe.

Nokia closed the mobile phone factory owned in Romania and fired 2,200 employees. The Finnish group started production in Jucu, Cluj, in February 2008, with an investment in plant amounting to EUR 60 million. Cloding down the factory was part of a group restructuring program.

Ioana Toader, ioana.toader@romania-insider.com

(photo source: Nokia)