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Volvo workers agree to cost cutting

By Matt Brogan |

It was only Tuesday we brought you news of Ford having signed a new labour deal with its union workers, now it seems Volvo have taken a similar step.

The Blue Oval’s Volvo brand says it has reached an agreement with its union that although plans helping Volvo save money does not involve further job cuts.

The agreement freezes wages until 2010 and calls for a reduction of wages during Volvo’s upcoming planned shutdown period – which could last up to 45 days. Further details of the plan have yet to be released.

“The deal means that all employees – both white-collar and blue-collar – contribute to lowering staff costs in 2009, in part by postponing the (next) wage round,” Volvo said in a statement.

Volvo has been forced to cut thousands of jobs over the last few months.


 
  • realcars

    Better than no job at all I suppose although I can’t help being a bit cynical considering how the Exectives continue to increase their salaries and perks at any opportunity.

  • Andrew M

    now thats a good looking Volvo

  • Wheelnut

    I agree Andrew M – it definitely looks alot better than say a Lexus RX.

    I’m glad to see that Volvo have managed to reach a similar deal with their worers just as Ford did.
    particularly when you look at their impressive more complete range of modern looking cars which is appealing to a wider [younger] demographic than before.

    I like the look of virtually all their cars with the exception of the XC90.. so it would be a shame to see them go under and all that hard work go to waste.

    Volvo have definitely improved their image same can’t be said for Saab though