Electronics Production |
Nokia insulted by YCL Electronics
Taiwan based subcontractor YCL Electronics Co. Ltd. earlier this week bought a front page advertisement in Wall Street Journal's Asia and Europe editions, stating that Nokia had an unfair contract with them.
The advertisement said “UNFAIR! UNFAIR! UNFAIR! Nokia's order cancellation = Bankruptcy to YCL,”. It was also published on Wall Street Journal's on-line edition. Further details were published on YCL's on web page.
YCL said Nokia has the power to cancel any order 2 weeks before delivery. YCL means that this will connect them with bankruptcy. YCL also published their e-mail correspondence with Nokia in the ad. In the correspondence it is said that a former YCE-employee signed a contract with Nokia which included the above clause.
According to Nokia, this regards a smaller order worth $200.000. YCL had some delivery problems and Nokia had their right to withdraw from the order.
“YCL should have negotiated the contract properly. It is unprofessional to use public pressure in this fashion. As both parties are businesses there is no scope for any claim of "unfairness". There does not appear to be any legal obligation upon Nokia to do anything about this”, a spokesman for Nokia said.
Nokia told the Finnish News Agency (STT) on Friday that it was seeking to negotiate with its YCL.
Click here to read more on YCL's web page (slow connection).
