Volvo Trucks has struck a deal with unions that will save 335 jobs that had previously been announced as being made redundant.

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The Swedish truck maker said the deal at its assembly plant in Gothenburg included reduced working time and salaries.


“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. This agreement helps us to deal with the low utilisation in a way that is beneficial for both the employees and the company”, said president and CEO Staffan Jufors.


The employees at the company’s Tuve plant are already working a flexibile system. The basic principles are more work when demand is high and less when the demand is low, with unchanged salary, Volvo said. This has allowed the company to manage the variation in demand without job reductions for several years there.


The new agreement is an extension of that system.

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The main elements of the deal will see employees able to work up to 10% less per month, in addition to the two ‘stop days’ that are presently being utilised based on the flexibile system.


The gross salary is being reduced by a maximum of 4% and this year’s 3.3% agreed salary raise is being postponed until 31 March 2010.


On top of that the company will not make the ordinary payments to the company’s pension funds for 2009. This is SKR500 kronor per month per employee.


In return, the company guarantees that no new job loss notices will be issued until 31 March 2010.


“I am very pleased that we in a constructive dialogue with the Swedish union IF Metall have managed to find alternatives to further reductions. This agreement allows the company to keep valuable competence and 335 people can keep their jobs. At the same time this agreement helps us to reach the necessary cost reductions. Together, we are better prepared for the upturn that will come sooner or later”, said Jufors.