Stockholm, Sweden-based Electrolux and IG Metall, a German manufacturing trade union, reached an agreement today on terms for closing Electrolux's laundry appliance factory in Nuremberg, Germany.
The agreement gives employees a severance package with payment of 1.8 months of salary per year of employment with the company as well as new job training. Pre-retirement benefit arrangements were also agreed upon.
A staged closure of the factory is estimated to begin in July and will be concluded by the end of 2007. A detailed timetable is being discussed with the local works council.
"We have reached an agreement despite difficult and tough negotiations during an ongoing strike," said Johan Bygge, head of Electrolux Major Appliances Europe. "For our employees, it is a very good agreement that underlines that Electrolux lives up to its responsibilities towards the affected employees.
A vote by trade union members to end the strike is expected this week.
Electrolux confirmed that the total cost for the closure of the factory will be approximately SEK 2.3 billion (approx U.S. $289 million).
to Daily News