IG Metall said the strike that began on Jan 22 at Electrolux AB’s AEG plant in Nuremberg could push the costs of its closure and relocation to Poland up to about 600 mln eur.
The union made the calculation based on a number of estimates, including the cost of lost production during the strike and the expense of moving the plant east.
An Electrolux spokesman declined to comment on the figure the union provided.
However, he confirmed that the company had taken a 240 mln eur charge against operating income in the fourth quarter of 2005 for plant closure and relocation costs.
He said that further costs would be added to this amount at a later date.
Work at the plant may resume as early as tomorrow, should a quarter of the workforce sign a preliminary agreement later today.
The 1,750 workers at the plant have been on indefinite strike over severance packages after Electrolux announced plans to close the plant and relocate it.
From Forbes.com