Agreement reached on closure of Nuremberg factory

Electrolux and IG Metall, a German trade union for the manufacturing industry, have reached an agreement on the terms and conditions for the closure of the appliance factory in Nuremberg, Germany.

The agreement gives employees a severance package including a payment of 1.8 months of salary per year of employment with the company, and training in a qualification company. Pre-retirement schemes have also been agreed upon. A staged closure of the factory is estimated to begin in July and to be concluded by the end of 2007. The detailed timetable is being discussed with the local works council. "We have reached an agreement despite difficult and tough negotiations during an ongoing strike," comments 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 among the trade union members on ending the strike is expected to take place during the week. Electrolux confirms that the total cost for the closure of the factory will be approximately SEK 2.3 billion, as previously communicated. For more information, call the Electrolux press hot line +46 8 657 65 07

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