Saab’s major union IF Metall has raised the spectre of forcing the company into bankruptcy unless unpaid wages are settled.
The threat of bankruptcy came on a day of high drama at the embattled automaker, that revealed it was unable to pay staff salaries for June as the debt crisis with its suppliers continued.
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“The legal way is we have to make this payment request and the company has seven days to act,” IF Metall national bargaining secretary Vele-Pekka Saekeala told just-auto from Stockholm.
“After that we have three weeks that we can go to court…and say the court says the company is bankrupt and then we can get our members’ wages from the State,” he said. “Of course the State is going to say we want the money from you [Saab].”
Today marks the traditional start of Sweden’s midsummer holiday, but before the start of the long weekend, IF Metall has secured at least temporary loans for its members.
The union has negotiated a deal with some banks that from Monday (27 June) will allow its members to receive loans to pay rent among other expenses.
Saekeala admitted that many of his members were “shocked” but that the development had not necessarily come as that great a surprise.
“If you say ‘the wolf is coming’ and then the wolf never comes, then people are not afraid any more,” he said. “We are going to have a long holiday this weekend in Sweden, midsummer, one of the most important weekends, so this is not good.”
The IF Metall bargaining secretary also cautioned that should Saab fail, the impact on jobs could spread far beyond its Trollhattan factory.
As well as an immediate 3,500 jobs directly affected at Saab, the manufacturer’s supply base could see up to 10,000 jobs at risk in the near vicinity, with the union attacking what it perceived as not enough action from the Swedish government.
“We are talking about 3,500 jobs at Saab directly in the plant – then we know we have also with suppliers around Saab…it could be maybe 10,000 in the near area,” he said.
“When we have this crisis in 2008/2009, when other countries and States helped, this government did not do anything,” he said. “We are very disappointed with them because many of our members lose jobs.”
Saekeala added those suppliers reliant on Saab and Volvo might consider the latter’s volumes as too small and move abroad.
