Volvo Trucks reaches agreement with union to save 335 jobs

Volvo Trucks and the local union have reached an agreement to deal with the low utilization at the assembly plant in Gothenburg, Sweden. The agreement includes reduced working time and salary which has made possible to avoid the previously announced reduction of 335 jobs in Gothenburg.

According to the company, the employees in the Tuve plant are already working with a flexibility system. This new agreement is an extension of the flexibility system to avoid further job reductions during extreme drop in demand.

Under the agreement, 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% and the 3.3% agreed salary raise in 2009 is postponed until March 31, 2010.

The company has said that it will not make the ordinary payments to the company's pension funds for 2009. This equals to SEK500 per month and employee. The company guarantees that no new notices will be given during the period for the agreement until March 31, 2010.

Staffan Jufors, president and CEO of Volvo Truck, said: "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."

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