CLEPA: Sweden should adopt short-time compensation

In an interview with TTela, Lars Holmqvist the CEO of CLEPA explains that Sweden, unlike Germany and Italy, does not offer much compensation for businesses struggling under a recession.

“I followed closely the last deals made with Saab and it should not have had a negative impact on GM had they accepted it. What GM did was paltry.”

The Swedish government has set up an educational package to help former employees qualify for other types of jobs. “Everybody knows it will not generate many new jobs. It would be better if they would offer something of real value. In Gernmany and Italy, the state offer short-time compensations, which means the state will pay 50% or more for a couple of years.”

This would help ensure that the bankruptcy estate would increase significantly in value.

“If Magna or some other company would take over, this would significantly boost their chances. But I have difficulties believing this could happen, given the current administration’s politics”

Cherine Khalil, press secretary for the employment minister Hillevi Engström, expresses some concerns when asked by TTela. “The German system does not apply to companies in bankruptcy proceedings, but rather existing companies hit by the recession. And the part about other companies interested in resuming production at Saab are pure speculations so far”.

She adds that short-time compensations talks are taking place between Hillevi Engström, Anders Borg (minister of finance) and the union IF Metall concerning measures to handle the recession. These talks just started.

I asked RedJ how this works in Germany:
“If you as a company hadn’t enough work to employ more than 50% of your employees, you where entitled to ask for “Kurzarbeiertgeld”. But you also had to show that the cause for your low level of activity was caused only by the crisis in 2009.

So if your company were entitled to receive “Kurzarbeitergeld”, the state did fill up your wage with maximum 60% w/o Kids or 67% w/ Kids of the difference between what you should get (working full time) and what you are getting during the “Kurzarbeit”.

This system was introduced in 2009, and back then a company could use it for a maximum of 24 months. The German government has extended the program already two times, for 2010 and for 2011, making slight changes.”

As for SweGov: Yes, Saab are now bankrupt, and Ms Khalil could very well be correct asserting that the German compensation does not apply to a company in bankruptcy proceedings, but how about answering this: Would this scheme have helped Saab a year ago? Could it help those interested in restarting Saab? Four ministers shows up in Trollhättan after SWAN had to throw in the towel. Where were SweGov when EIB were practically sabotaging Saab?

ThomasJ
Member

Sweden should have given SAAB a 5 billion SEK loan in the beginning of 2011.
This should have been with a very low interest rate and special agreement/demands and within the existing guarantees, as SAAB Parts.
I guess talks were performed, but there was probably not any interest at all, from the Swedish Government.

Troels, Denmark
Member

You are right! So strange and so stupid that the Swedish Government sacrifices one of the most innovative – and potentially eco-friendly tech-developing – (car-)industries in the world on their alter off neo-liberal religion.

MeanSabean
Member
SHAME ON YOU SWEDISH GOVERNMENT!!!!!!!!! I am Canadian, and let me tell you we would only dream to have a great ingenuity automobile company like Saab who produces some of the worlds best automobiles. There is no chance in hell that my government would let a home grown company go bankrupt! Where is your pride? As for the general population why don’t you manifest alongside SaabsUnited on Jan 14th and 15th make it a big manifestation. I’ll say it again where is your PRIDE? The American and Canadian governments funded and did what ever they could to help our auto… Read more »
LarsG
Member

Unfortunately we are not enough Saab fan in Sweden and it is long left to next election, but I am sure that Swedish Saab enthusiasts have a good memory.

Trued
Member
Unfortunately we the Swedish People have elected the out-break group from the “old conservatives” (moderaterna). Their ideology rests on Neo-Liberal ideas. Bring down taxes, care less or not at all on political areas like Defence, Police and business that can not do by themselves. The ex. Prime minister Carl Bildt ( presently minister of State Department) is old School but was put aside by Anders Borg, Fredrik Reinfeldt, Mrs. Stegö-Chilo and à few more some years ago. — The NEW conservatives have taken massive amounts of social democrats under their wings slowly making them to a Power and wealth party.… Read more »
Ralph
Member

I’ve always been suspicious of men with pony tails….

Khrisdk
Member

Yup..Always let your hair hang down..

http://www.youtube.com/watch?v=Q-2EDraQ9fk

Ralph
Member

🙂

Khrisdk
Member

Traditional values..Nice haircuts..Patric Ullaeus..
Feel free to substitute Metal for Saab 😀

http://www.youtube.com/watch?v=_ulHlv659Jo

Ralph
Member

😮
More loud metal singing for you, sir:
http://www.youtube.com/watch?v=dXVRdSbKDT8 😉

montahue
Member

You are right about the Neo-Liberal idea’s and how those affected what happened after GM sold Saab to VM. What i have no clue of is what swedish military has to do with saab cars and why it matters if they are god soldiers or not?

MeanSabean
Member

It’s not just about being a Saab lover it’s about your Swedish pride!

900 classic cab
Guest

+1

hans h
Member

+99

Angelo V.
Member
Understatement of 2011: “What GM did was paltry.” Mr. Holmqvist was honest though, and told it like it was! I am so sorry for what the Saab employees are going through this Christmas season. We, the people who own the cars and love the brand—-are sad and mad. But for those employees who gave it their all—-they now have to face 2012 worried about putting food on the table and money in the bank. The tragedy of this is that so many people worked so hard to put a workable deal together—and my belief is that GM never had any… Read more »
Gatelaw
Member
There is no swedish pride amongst most swedes. Most young people and professionals either dream of working for an international and reputable company or to start their own business to sell to an international and reputable company when (hopefully) successful. There is hardly any pride left in swedish industry, and of course the last decade or two we have seen most (if not all) successful swedish companies of greater importance being sold off to international investors/companies and the current swedish administration clearly only value companies in the service industry such as banks, investment firms and the like. One of the… Read more »
Allan B
Member

Very interesting post, Gatelaw.

lundin
Member
I agree to some extent. There is a legacy in Sweden because of Volvo,Ericsson,Saab,IKEA,Astra etc that creates some very interesting companies that still has the edge when it comes to creating innovative services and products. The shape of the Swedish (small-mid-large sized) companies can be illustrated with a a sandglass, this is not the case in Germany for instance (atlest not so pronounced) where the situation is more like a cylinder. We do have some BIG companies (as of today with many foregins stakeholders).We have few mid-sized companies that however have services/products to eventually become one of the big ones.… Read more »
nichell
Guest

Who stole my Christmas? Grinch Motors! Thanks Grinch Motors, for stealing my Saab Christmas. I will never buy a car from you. You’re the Grinch that stole our Christmas. Boycott the Grinch! Living off the backs of American taxpayers and you had the gall to deny a struggling car company.

zippy
Member

+900

I think this was all part of Grinch Motors’ intention right from the outset in Jan 2010. Shame on SweGov for not helping though.

nichell
Guest

Grinch Motors, parasitic.

KaiC
Member
To survive or not survive an company which is really a Swedish pride mostly relying on the policy of the country.We all have seen how an old GM has become to a new competitive company.It was not the power of GM or other investors.GM should thank to the government of the UnitedStates or thank to the policy of the US government.I always think about the topic ‘free trade’ .But even in the developed nation like US there are not all the trades called ‘free trade’. That means whether you want to pull a company down or not must depend on… Read more »
3cyl
Member

The lack of political support from Sweden is hard to understand. If Sweden could have enabled SAAB’s survival with a reasonable amount of financial support, the failure to attempt to provide such support is unconsionable.

wpDiscuz