Negotiations on a severance package for employees to be made redundant at mobile phone components producer Balda Solutions (Bad Oeynhausen / Germany; www.balda-solutions.de) have failed, and the matter is due to go to arbitration on 7 March 2008. The company, a spin-off of precision injection moulder Balda AG, has been sold to KS Plastic Solutions (Schondorf / Germany), along with the German tool-making unit Balda Werkzeugbau (Bad Oeynhausen) and the Hungarian subsidiary Balda Solutions Hungaria (Vezprém).

While deputy works council head, Andreas Kröger, told Plasteurope.com that he was not surprised by the breakdown in talks, but believed there was scope for further negotiation, a company spokeswoman put the blame on the works council, hinting that its expectations may be “too high.” The severance package for employees the company made redundant in 2007 (see Plasteurope.com of 31.10.2006) was “generous,” she said, remarking that the employee representatives are asking for “three times” the usual pay-off and numerous special benefits that are “beyond the means of a medium-sized company.” Balda needs to keep its funds together to finance the company’s reorientation, she suggested. The company has offered 0.25 salaries per year of employment.

Both sides agree that production should remain in Germany. Kröger said the goal should be to supply the entire market for plastics moulding, from shaver housings to upmarket white goods. According to the spokeswoman Balda Solutions already has taken a step towards specialisation with its “Style Your Phone”, which allows mobile phone owners to decorate the housing with its own photos, for example. He said the small company sees “great potential” for sales in the German market.