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February 14, 2012
Swedish CEO 'lays himself off' rather than fire more workers
Published: 15 May 09 09:00 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/19462/20090515/
The head of a manufacturing company in Örnsköldsvik in eastern Sweden decided he’d rather quit than lay off more employees.
- Centre Party touts new Swedish labour model (5 May 09)
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- Swedish unemployment rises to 8.3 percent in March (23 Apr 09)
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The combined cuts would have cut the total number of employees at Örnalp Unozon in half.
But Melbin had had enough after the first round of job cuts, and opted instead to tender his own resignation, reports the Örnsköldsviks Allehanda newspaper.
“He advocated for a reduction in employees’ working hours instead of giving them notice. He refused to fire any more people and carry out the decision of the parent company Vinovo,” said the union steward to the newspaper
The head of the Vinovo investment company, which owns 91 percent of Örnalp Unozon, said the decision resulted from a disagreement between Melbin and the company’s board.
“I’d like to express it as a problem of confidence due to a lack of consensus between the board and the CEO,” Vinovo chief David Malmström told Örnsköldsviks Allehanda.
Vinovo has already named a new CEO to take over operations at Örnalp Unozon.
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Respect to you.
(Hold your fire - joke.)
If this CEO quit the company because he believed he wasn't an asset anymore...ok, they'd better look for somebody else more qualified, but will the salary of a highly skilled CEO be lower than the previous one? I doubt.
If the company was trying to cut down costs then the brand new CEO won't have too many options if this economic downturn gets worse which is unfortunately the predictions for 2009 and perhaps only a possible slow recovery in 2010 --- Chances are that they might lay off other employees.
On one hand ,it seems to be a good decision for those people working in that company who were at the risk of being laying off , as they fell that they r safe, at least temporarily . Even any rational reader of this news without business background may appreciate the generous personality of the CEO ,since he has given priority for his subordinates ,benefited others at his and his families expense .Just like Christ who nailed to the cross to save his followers .
On the other hand it is at this kind of bad time in the market the capacity of the CEO to solve problems can be measured . In fact ,if Mats Melbin resignation is the solution for the manufacturing company to survive in the business retaining those poor employee , of course , he was on the right track .But for me the decision of Mats Melbin is comparable to the Dr who leave his patient untreated while suffering and about to die.
I am hopeless refugee but optimistic for Sweden economic since according to IMF report world GDP will recover in 2010 and those employee lay off will hopefully return back to their pervious job .We have to pray day and night for that …..
God always be with you .
However, I would still say that we needed this CEO to be there for any alternative solution. By the way this is also a good solution to lay himself off. This would was a message.