Volvo says it engaged in extensive talks with its organised labour before committing to the third shift for Torslanda announced today (16 October).
Adding an extra shift in Q1 next year at the Western Sweden factory will create 1,300 new jobs and comes as a welcome filip for the newly-installed Social Democratic government elected just weeks ago.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Part of the deal will see Volvo using what it describes as the “flexibility” of one third of the 1,300 new staff working using temporary contracts, while the possibility of overtime will also be available.
“It was a long discussion here and we always said we need a new engagement to be confident of investing in this factory,” Volvo CEO, Hakan Samuelsson told just-auto on the sidelines of today’s Scandinavian suppliers (FKG) forum in Gothenburg.
“One [element] is this term flexibility, which is coming from a collective time bank [for example].”
The Volvo chief lauded the state of industrial relations at the manufacturer, describing them as “constructive and positive,” as the company aims to build an all-time high of 470,000 vehicles this year.
“You can only do this with strong counterparts and anchor it in the people in the workshop,” said Samuelsson. “We took a large step.
“We have a pretty good development on the European market right now. [The] third shift will bring us from us from 180,000 capacity to what is required.”
Sweden’s new government is headed by former union, IF Metall chief, Stefan Lofven, with many at today’s conference expressing the hope the Prime Minster’s experience of industry would benefit the automotive sector in the future.
“I think there is a good understanding there from the new Prime Minister about the conditions of industry,” said Samuelsson. “So I expect and hope he will show continued interest in the industry, because I think that is the starting point for good dialogue, that you are interested in having a basic understanding Sweden needs a bigger industrial sector to solve the problem of unemployment.”
National Electric Vehicle Sweden (NEVS) was due to speak at the conference, but senior executives were called suddenly to a meeting this morning, thought to be in Asia or the Far East as they grapple with the Swedish automaker’s current difficulties.
Samuelsson expressed support for a robust automotive sector however, despite the travails of his counterparts in Trollhattan.
“I would like to see a strong car industry in Sweden,” he said.
“That is good for us and good for the supplier base.”
