Feature

3000 BenQ Job Losses, Siemens to go legal?

BenQ axes 3,000 mobile employees whilst the Siemens Board considers legal action against them after digging into their retirement funds to offer the affected workers a €30m hardship fund.

The Siemens handset unit given to BenQ last year filed for bankruptcy last week after its parent company refused to make any further payments to the European subsidiary leading to an expected 3,000 job losses.

At an extraordinary meeting a few days ago the Siemens Board in a “show of solidarity” voted to put their planned 30% pay-rise into a ‘hardship fund’ for their previous employees totaling €30m.

"We think the way BenQ has acted in Germany is unacceptable and want to help where we can," Klaus Kleinfeld told the German Newspaper Bild. "If BenQ is going to leave employees in the lurch, then we want to help actively and quickly."

Kleinfeld is also reported to have said that Siemens are considering taking legal action against BenQ following Siemens HQ being besieged by protesters shortly after the bankruptcy announcement.

It is thought BenQ is to continue handset operations in Asia however the fate of the remaining handset units across Europe is in doubt.