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.