Disturbed by the news of the threatened insolvency of BenQ Mobile in Germany, Siemens has set up a fund of 35 million euros (approximately U.S. $44 million) for the employees of BenQ mobile’s German location. The company’s managing board is also waiving its approved salary increase for one year to contribute 5 million euros (approximately U.S. $6 million) to the fund, which will provide financial support and pay for employee education and retraining. In addition, BenQ Mobile employees will be treated as internal applicants for the more than 2,000 current job openings at Siemens in Germany and actively assisted in finding new jobs.
Siemens says that its previous decision to sell its mobile phone activities to BenQ was the solution with the greatest employee benefits. From a strictly business point of view, there were considerably more attractive options at the time. To close the business would have been substantially cheaper. The Taiwanese company had assured Siemens of its intentions to operate and expand the German locations in the future and presented a credible plan for accomplishing this. Siemens contributed some 600 patent families, allowed BenQ to use its brand name for five years and provided substantial financial support for a successful launch.
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