German Labor Union: Nokia Siemens Networks To Keep Munich Site
03/23/2012| 01:07pm US/Eastern
Germany's labor union IG Metall said Friday it has agreed with Nokia Siemens Networks management on key issues to resolve a dispute about restructuring measures in Munich.
The Munich production site will remain open with a staff of 2,000 workers, contrary to plans announced at the end of January, the union said.
At the time, NSN said it would cut jobs and reduce the number of manufacturing, customer support and research sites in the country to just five from 35. The plan included the closure of the Munich site, the company's biggest center in Germany.
The joint venture is 50-50 owned by Nokia Corp. (NOK) and Siemens AG (SI) and employs about 9,100 people in Germany, with about 3,600 of those in Munich.
NSN said in November it would cut 17,000 jobs across the world by the end of 2013 and restructure its business. The joint venture started operations in 2007 and has been struggling in the face of tough competition ever since.
A spokesman for NSN wasn't immediately available for comment.
-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500