29 September 2007

EU - Globalisation Fund to help 4,000 workers in mobile phone sector

(RAPDI)
The European Commission has approved two further applications for assistance under the European Globalisation Adjustment Fund (EGF) – from Germany and Finland. These will now be put before the European Parliament and the Council for decision. They are the third and fourth applications for EGF support and concern redundancies in two companies in the mobile phone sector: BenQ in Germany and Perlos in Finland. Both applications are made against a general trend towards delocalising production for mobile phones and accessories, mostly to Asia. This is not only because it is cheaper to make mobile phones there, but also because of the proximity of technology partners and a fast-growing consumer market.