The
management at Volvo Trucks and the local union have come to an
agreement to deal with the low utilization at the assembly plant in
Gothenburg. The agreement includes reduced working time and salary
which has made it possible to avoid the previously announced
reduction of 335 jobs in Gothenburg.
"The low demand for trucks has already forced us to cut many jobs
and we are today very pleased with this solution, which means that
we can pull back the latest announced reductions in Gothenburg.
This agreement helps us to deal with the low utilization in a way
that is beneficial for both the employees and the company", says
Staffan Jufors, President and CEO at Volvo Truck Corporation.
The employees in the Tuve Plant are already today working with a
flexibility system. The basic principles are that you work more
when the demand is high and less when the demand is low, with
unchanged salary. This system has allowed the company to manage the
variation in demand without job reductions for several years.
This new agreement is an extension of the flexibility system to
avoid further job reductions during this extreme drop in demand.
The main elements in the agreement are;
- The employee can work up to 10% less per month, in addition to
the two stop- days that are presently being utilized based on
the customer flexibility system.
- The gross salary is reduced by a maximum of 4 percent.
- This year's 3.3 percent agreed salary raise is postponed until 31
March 2010.
- The company will not make the ordinary payments to the company's
Pension Funds for 2009.
- This equals to 500 kronor per month and employee.
- The company guarantees that no new notices will be given during
the period for the agreement, until 31 March
2010.
" I am very pleased that we in a constructive dialogue with the
Swedish union IF Metall have managed to find alternatives to
further reductions. This agreement allows the company to keep
valuable competence and 335 people can keep their jobs. At the same
time this agreement helps us to reach the necessary cost
reductions. Together, we are better prepared for the upturn that
will come sooner or later", says Staffan Jufors.