For discussion: working conditions and market policy by Nokia

[Neo XL]

The german TV magazine "Monitor" has already uncovered many corporate scandals. They have once again on the Locust "Nokia" reported here has already shown its true colors in Germany.
After the company in the city Bochum took over € 60 million subsidy to support the work there, soon they have closed the factory and refunded only under pressure of about 30 million €.

Reason: too expensive jobs (2500 - $/2000 € average earnings), too far from the new markets.

They moved to Romania, where they roundabout also conceded 30 million subsidy for the creation of jobs, especially because a new infrastructure was created by the subsidies. After three years some time ago the factory was closed, no money refunded.

Reason: too expensive work (300 $/ 250 € average earnings), too far from the new markets. The merit was too small even for Romanian conditions, working conditions and times much harder than in Germany.

They moved to India, conceded there an estimated 100 million subsidy for the creation of jobs. Then again, relocating is planned.

Reason: jobs and working conditions in Vietnam are still cheaper (in India: 160 $/ 125 € average earnings). The achievement was even by Indian standards not sufficient to feed the family, working conditions and times are harder than in Romania.

Read carefully in advance to find out where your devices are manufactured and under what conditions. There is even a famous company from Cupertino who enjoy making similar headlines. Because cash investors and managers get (including tax) billions and rub their bellies and their staff can produce under unhealthy and inhumane conditions your smartphone.
Also HTC is in conflict, because the displays were produced by a company, where children shall work without earning money. Questions about these problems were not answered. HTC says, they don´t know something about the produce conditions.

A boycott of these companies would be decent, rather than ride on the "hip" wave, if they don´t change their politic.

For an emerging company that starts in the new markets, there are such companies guidance how it should (not) run, if they want to be successful.

Against Forgetting

 

[_Madmatt]

As much as I agree that inhuman working conditions are not good, everyone does it. Let's take an example: I start a company and I want to make smartphones, but I want them to be made in good, healthy, human conditions. That would easily cost me double the production price compared to other manufacturers. As a result, my model to compete with the Lumia 800 would cost around €800 to €1000 (compared to the €400-500 for a Lumia). What would happen? Nobody would buy it, because they get almost the same for half the price if they buy the Nokia phone.
There's only one thing driving this situations: money. As long as there are no international laws to prohibit this sorts of activity, it will continue, just because otherwise your products cannot be competitive in the market.
On the other hand, if such laws would come, you would have a lot of unsatisfied customers, because we would have to pay a lot more, for the same device. Then again, it would be very important that the law is international.

It's all about the money...

 

[juukas]

As much as I agree that inhuman working conditions are not good, everyone does it. Let's take an example: I start a company and I want to make smartphones, but I want them to be made in good, healthy, human conditions. That would easily cost me double the production price compared to other manufacturers. As a result, my model to compete with the Lumia 800 would cost around €800 to €1000 (compared to the €400-500 for a Lumia). What would happen? Nobody would buy it, because they get almost the same for half the price if they buy the Nokia phone.
There's only one thing driving this situations: money. As long as there are no international laws to prohibit this sorts of activity, it will continue, just because otherwise your products cannot be competitive in the market.
On the other hand, if such laws would come, you would have a lot of unsatisfied customers, because we would have to pay a lot more, for the same device. Then again, it would be very important that the law is international.

It's all about the money...

I don't think that a HTC-phone would cost €1000 if they made sure that their displays wasn't produced by children without salary.

 

[_Madmatt]

I don't think that a HTC-phone would cost €1000 if they made sure that their displays wasn't produced by children without salary.

True. But it's pointloss to only do it for the display. You should do it for ever single part in the phone, and don't you worry, costs will go up dramatically.