Baker & McKenzie defended Nokia Networks successfully before the German Federal Labor Court (Bundesarbeitsgerichtt 4 AZR 796/13) against a claim of an IG Metall union member for a so-called union bonus granted during the company's restructuring in Munich in 2012.

The decision of the fourth chamber of the German Federal Labor Court, which was announced in Erfurt today, approved a the restructuring package which was agreed upon by Nokia, the IG Metall and the works council and included differentiated severance payments for union members who were member at the time of the announcement. The Federal Labor Court's decision agreed that special benefits for union members may be granted and that these can be safeguarded against "free lunch" union members who only enter the union post factum.

"The decision confirms the courageous actions of the operating partners and IG Metall during the rescue of the plant in Munich. Moreover, this ruling significantly protects future restructurings and future cooperation with the unions," commented Dr. Burkard Goepfert, labor law partner in Munich and leading court representative of Nokia.

Baker & McKenzie regularly advises and represents major national and international companies on employment law issues. Most recently, Baker & McKenzie advised Opel in proceedings concerning the more favorable treatment of IG Metall members, in which the German Federal Labor Court dismissed the action of an Opel employee from its Rüsselsheim factory.

Legal representatives of Nokia Networks: Baker & McKenzie

Legal representative:

Employment: Dr. Burkard Goepfert (partner, Munich) and Dr. Gregory Dornbusch (partner, Frankfurt)

Further team:

Employment: Petra Hess (counsel, Frankfurt) und Daniela Rottmeier (associate, Munich).