BenQ might cut jobs at Siemens German mobile plants after 2006

BenQ recently acquired the mobile phone division of the once giants in the mobile market Siemens. They have promised to keep the working conditions in the factories same for now. However, the latest reports in say that BenQ might be looking at job cuts in the mobile division after 2006.

This report was reported by Der Spiegel weekly magazine, which quoted the BenQ’s chief executive Lee Kuen-Yao. The company had agreed to honor the running wage agreement Siemens had with employees of the unit though they would be discussing the things afresh from ground level once that contract expires.

Lee Kuen-Yao said in a statement to the media group: ‘We do not expect that the Germans work as hard as the Chinese do. But they definitely need to recognize that the mobile phone division is faced with a very critical situation and that everyone will end up losing if we block out changes.’

Looks like the European are coming to realize the reality that Asian countries are becoming a power to recon with.