EMCC European Monitoring Centre on Change

Volvo Construction Equipment

Company/Organisation:
Volvo Construction Equipment

Geographic Location

Country: Sweden
Region: Östra Mellansverige
Location of affected unit(s): Eskilstuna and Hallsberg

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28 - Manufacture of machinery and equipment n.e.c.
Number Employed: 2360
Group: Volvo Group

Employment Effects

Announcement Date: 17-05-2016
Planned Job Reductions min: 180
Planned Job Reductions max: 180
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-11-2016

Additional Information

Volvo Construction Equipment (Volvo CE) has initiated employer-employee negotiations aiming to cut 180 jobs. According to Volvo CE the reason for the redundancies is low demand for heavy equipment on the world market. Of the redundancies, 60 blue collar positions will be cut in Hallsberg, and a further 110 blue collar positions will be cut in Eskilstuna, and 10 white-collar positions will also be cut in Eskilstuna.

The leader of the municipal board in Eskilstuna has expressed sadness in regards to the redundancies. Local union leader in Eskilstuna calls the scale-back a hard blow to the industry and said that the union had hoped that Volvo CE would be patient and wait a bit longer for the demand to rise on the world market. Local union leader in Hallsberg has expressed anger and frustration in regards to the decision.