Integrative strategy, competitiveness and employment: A case study of the transition at the Swedish truck manufacturing company Scania during the economic downturn in 2008–2010

Abstract

The purpose of the article is to investigate how and why the truck manufacturer Scania adapted to the economic downturn between 2008 and 2010 in the manner it did: First, Scania signed a crisis agreement on fewer working hours and lower wages, and, later, it signed an agreement stipulating fewer working hours, but without wage reductions.Both of these agreements were combined with investments in competence development and education as well as with the decision not to give notice to the employees, which was uncommon among Swedish companies. It is claimed that the company wanted to strengthen the competitiveness by integrating the unions and the employees even more in the business. An important prerequisite was the company's Flexibility Agreement, which allowed the company not to give temporary employees new contracts and to let temporary employees leave the company as soon as their maximum employment period of six months expired.

Employment practices, labour flexibility and the Great Recession: An automotive case study

“…While businesses may respond by reducing employment levels through downsizing (Cooper et al, 2012; Datta and Basuil, 2015; Dencker, 2012; Goyer et al, 2016; Johnstone, 2018), they may also make changes to employment practices. Examples include freezing wages and bonuses, reducing overtime, diminishing opportunities of promotion, reallocating jobs and responsibilities, reducing expenditure on training and development, revising pension provision and adjusting working time (Ahlstrand, 2015; Cascio, 2014; Gunnigle et al, 2013; Lai et al, 2016; Larsen and Navrbjerg, 2015; Roche et al, 2013; Strandholm et al, 2013; Svalund, 2015; Svalund et al, 2013; van Wanrooy et al, 2013).…”

Process of change – competence development as a restructuring strategy

“…For the company, it was important for continuous improvement work not to be understood in terms of fewer work tasks despite an economic downturn and to act according to the company's core values (Ahlstrand, 2013). Here, we could see that the investments in competence development and education corresponded quite well with common understandings in the industrial agreement between the employers and trade unions.…”

“…Here, we used the company Scania as case. Scania, was one of the companies that was heavily affected by the economic recession in 2008 and in a situation of restructuring they chose to invest in competence development and education in order to maintain both the focus on continuous improvement work (this can be related to aspects such as learning, commitment and job satisfaction) and competitiveness (Ahlstrand, 2013). This can be associated to the more general context of restructuring,…”

“…The agreement emphasized the importance of investments in competence development and education for developing companies' competitiveness. The unions, as well as the management, expected that the strategy would strengthen the position of the company and increase production rates with a minimum of quality and delivery problems when the economic situation eventually improved (Ahlstrand, 2013).…”

Negotiating a new Swedish model: Employment transition agreements and the struggle over redundancies

“…They still promote skills investments over added income protection but acknowledge that such education and training often have to be conducted after being dismissed, not as a proactive measure. SAF, on the other hand, has never shown any interest in using the ESA/ETA as an instrument for overcoming the risks of underinvestment in skills (although that does not contradict the possibility of some companies acting in that way; see Ahlstrand, 2015, for an illustrative case). What did happen within SAF during the 1980s, though, was an increased preference for decentralisation of collective bargaining: more market, less central coordination.…”