The crisis for the Swedish auto brand Saab is becoming increasingly urgent. Today the company announced that there is no money to pay salaries to employees. The management is desperately trying to raise money buthave now only just over a week before the union can ask for the company to be set into bankruptcy.
According to a press release, the company is still in negotiations to sell the company’s properties in Trollhättan, western Sweden, and with other financial backers that they already have relationships with. There are not any forecast of when there will be any money to pay the salaries.
“It is unfortunate, very sad to announce this the day before the Midsummer holiday,” Gunilla Gustavs at Saab Automobile’s communications department, told news agency TT.
”We continue to seek short-term financial solutions. We can not say anything further.”
The pause in salary payments are for all employees, including the management.
IF Metall, one of the unions at the company, now says that they will start to prepare a ‘payment reminder’. After that has been filed, Saab has seven days to respond.
If that happens, that we file a payment reminder, and the company still does not fix this, we have to consider bankruptcy,” said Veli-Pekka Säikkälä, negotiations secretary of IF Metall.
Gunilla Gustavs says that Saab hopes to be able to clarify the situation before then.
“We are working very hard to fix this very soon. We had hoped that we could avoid today’s unfortunate message. But we will not give up.”
Saab is also continuing negotiations with subcontractors to get supplies of materials and thus be able to start the production once again.
Due to the Saab announcement, the Minister for Enterprise, Maud Olofsson, held a press conference on Thursday afternoon.
“I feel strongly with the employees. Meanwhile, it is Saab who as a company must clarify this with their employees and who must find the financial solution,” she told journalists.
Saab Automobile has 3800 employees. IF Metall offers emergency loans to its members. If the company goes bankrupt, the employees are entitled to payments from the government salary guarantee.