200 employee contracts not renewed at Saab next month

This story made the headlines in the Swedish papers earlier today (yesterday by the time the Swedes wake up).

Some of the wider-circulation newspapers made quite an issue out of it. This googletrans is from TTELA:

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200 may go from Saab

More than 200 people may not stay at Saab in Trollhattan.

The information came on Thursday and mostly temporary employees in production.
The day before was the negative decision: more than 200 temporary employees at Saab Automobile in Trollhättan will not be extended. The information went out of business today, but all concerned will receive a personal reply. Most of those concerned have contracts that extend to 22 December, according to Hakan Schött, IF Metall Club President at the Trollhättan factory.

– First, we are in a season, as always happens this time of year, and has the teething problems we had with the 9-5 now corrected itself. We can go with the solid strength, pure and simple.

But if there is an expected off-season, it might not be a shock to those affected?

– I do not know, and it is clear that we had hoped to give an extension, or even permanent employment. But there are many factors behind the decision – in particular that we have written down the [sales] forecast, “said Hans Schott.

It was in late October that it was clear that the sale of Saab in Sweden and globally do not come up to expectations. Last spring the target was 60,000 cars to be sold during the year – a figure that proved overly optimistic. In August, the number down to 45,000, and the latest interim report pointed to modest 30000-35000 cars.

– It has taken longer to restore confidence than we previously thought. The process has been slower and that’s why we wrote down as forecast, says Håkan Schött, which says that it is far from impossible that new jobs will be created ahead early spring.

– The season traditionally starts in the spring. People simply buy more cars then.

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Some people wrote to me about this, and wrote in comments, saying that Saab had laid off 200 people, which is not really an accurate description of what happened here.

Due to Saab having to lower their full-year sales forecast, they’ve also had to delay adding the second shift and from this report, it seems they’re likely to not renew some existing temporary employment contracts for 200 people at the plant. These contracts expire on December 22.

I’m not trying to downplay the matter as it’s obviously one that will effect those families quite seriously. But Saab have to match their staff load with anticipated production and it would be financially irresponsible of them to carry people when production doesn’t warrant it.

As mentioned in the story, sales are traditionally lower in the winter months but rise again in the spring and that’s probably the best chance for these contracts to be renewed or for new people to come on board.

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