Early in November 1998, Swedish media reported that metalworkers made redundant by the ball-bearing manufacturing company SKF in Gothenburg were to work for Volvo Cars, which was short of labour. Two weeks later, the management of the Volvo group announced that it planned redundancies for 5,300 workers worldwide, including 2,600 in Sweden and 1,100 in other European countries. Cutbacks were to be effected before mid-1999. At the time of writing, the management has not specified which units are likely to be affected and how the cutbacks would operate. It did however promise that cutbacks would be carried through "in a socially responsible and dignified manner and in full agreement with the trade unions".
In November 1998, the Volvo group announced that it has plans for redundancies involving 5,300 workers worldwide, including 2,600 in Sweden and 1,100 in other European countries. The cutbacks are to be effected before mid-1999. Trade union representatives doubt if the company will be able fully to realise the cutbacks.
Early in November 1998, Swedish media reported that metalworkers made redundant by the ball-bearing manufacturing company SKF in Gothenburg were to work for Volvo Cars, which was short of labour. Two weeks later, the management of the Volvo group announced that it planned redundancies for 5,300 workers worldwide, including 2,600 in Sweden and 1,100 in other European countries. Cutbacks were to be effected before mid-1999. At the time of writing, the management has not specified which units are likely to be affected and how the cutbacks would operate. It did however promise that cutbacks would be carried through "in a socially responsible and dignified manner and in full agreement with the trade unions".
On 2 December Volvo Construction Equipment informed its employees at the excavator factory in Eslöv in southern Sweden that the whole factory would be shut down and its production transferred to Konz in Germany. Some days later, Volvo Cars and Volvo Trucks in Gothenburg notified the County Labour Board that 722 white-collar workers would be made redundant. On 14 December, 295 employees, mostly blue-collar workers, at Volvo Cars in Olofström were given notice of redundancy.
Negotiations are continuing in all these locations. In general, the trade union representatives doubt whether the management will proceed with all these cutbacks, referring, among other matters, to the large amount of overtime being worked in Volvo Cars and Volvo Trucks. They also argue that before Volvo considers any redundancies, it should dispose of its many consultants, each of which, it is claimed, costs three times as much as one employee.
Eurofound recommends citing this publication in the following way.
Eurofound (1998), Volvo plans 5,300 job losses worldwide, article.
