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Scania Buses & Coaches in Katrineholm notifies 120 of temporary layoffs

Employee co-determination negotiations are starting today at Scania's Katrineholm factory on a month-long layoff of 120 employees early next year. This measure was necessitated by a temporary drop in incoming orders for fully-built buses. Orders for chassis, on the other hand, have increased.

"The background to this downturn can be seen in the current major structural changes among our customers, characterised by acquisitions and mergers," explains Håkan Ericsson, Senior Vice President Scania Buses & Coaches. "The result is that expected orders for fully-built buses have been postponed for the moment."

This affects bus-building in Katrineholm, which is now temporarily over-staffed by 120 workshop employees in the body workshop. Employee co-determination negotiations on the proposed layoffs started today. Staff who are being served notice will be laid off for one month starting on 10 January 2000.

"We believe that one month is sufficient to contain the downturn," says Håkan Ericsson.

"In the longer-term perspective, we can discern increased demand for our products; in fact, increased orders are already flowing in today for chassis without bodies. However, this increase is not sufficient to fully compensate for the dip in the demand for fully-built buses, since that operation is far more labour-intensive," concludes Håkan Ericsson.

For further information, please contact Gunnar Boman on telephone +46 150-58599 or mobile phone +46 70-550 8606.