Unemployment among main Saab union, IF Metall members, has soared to 40% in the automaker’s home-town of Trollhattan as the fate of the bankrupt manufacturer continues to hang in the balance.
It is believed three bids have been submitted to Saab’s receivers, with Mahindra & Mahindra and Youngman, along with a Chinese/Japanese consortium thought to be the main contenders.
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Union sources indicate the Gothenburg lawyers will announce any winner by mid-June – the same date to which their lease on Saab’s Trollhattan factory runs – but it is the jobless rate that is irking the IF Metall labour body.
“For our members, unemployment in Trollhattan is 40% for metalworkers,” IF Metall legal adviser, Darko Davidovic told just-auto from Sweden. “We have 6,000 members in Trollhattan – of this 6,000 [some] 40% are unemployed because we have Saab and another company in Trollhattan which is bankrupt.
“It is like total unemployment for everyone – white collar and blue collar [combined unemployment] in Trolhattan is 17%.”
Despite the grim headline figure of 40%, the IF Metall legal adviser paid tribute to the resilience – and optimism – of Saab’s almost 4,000 redundant workforce in its belief a takeover for the manufacturer is still possible.
“The three that have said they will make a bid – they have said they will produce cars – even Saab cars,” said Davidovic. “People say ‘we have a chance to get our jobs back.’
“They [members] are so hopeful and are looking to fight it – it is a special experience. I met one of the employees and he said Saab will come back – you are going to see.”
Davidovic said some 396 of his members had secured work with Volvo in Gothenburg – around one hour from Trollhattan – with the Swedish government promising improved transport links to the coastal city to facilitate such transfers.
Even if a bid was successful, the complex issue of Saab’s outstanding obligations remains.
The automaker is carrying colossal debt of around US$2bn, with assets thought only to be worth some US$531m.
