• Sweden edition
 

High lay-off notices 'a deliberate tactic'

Published: 22 May 2009 16:38 GMT+02:00
Updated: 22 May 2009 16:38 GMT+02:00

Firms also distort their lay-off forecasts in order to get around the "last-in, first out" principle enshrined in the Employment Protection Act (Lagen om Anställningsskydd - LAS), the Swedish Public Employment Service (Arbetsförmedlingen) says in a report to the government.

The employment agency also states that many companies choose to exaggerate redundancy figures to avoid going through the same process twice, for both practical and psychological reasons.

By announcing major lay-offs firms strengthen their hand ahead of negotiations with trade unions, according to Clas Ohlsson at the employment agency. Less than half of all redundancy notices result in actual lay-offs.

"It's simply a way of creating a strong negotiating position in relation to the unions," said Ohlsson.

The number of redundancy notices has little effect on the actual unemployment statistics, according to Clas Ohlsson. But they are a good economic indicator as they provide an insight into a company's plans for the future.

"A lot of the redundancy notices relate to industrial workers, who still constitute quite a small group among the unemployed," he said.

Veli-Pekka Saikkälä, a negotiator with the Swedish Metalworkers Union (IF Metall), said the tactic of announcing excessive redundancies was unlikely to achieve its goal of weakening the position of the unions.

"I think the exceptions they're making to the turn-taking rules are ones that they would have made anyway. The industrial sector is hardened; we're used to companies making all sorts of threats about lay-offs, closures or moving abroad," he said.

13,000 people were given notice of redundancy in April, compared to 4,800 people in the same period last year.

TT/The Local (news@thelocal.se)

Your comments about this article

20:21 May 22, 2009 by Russ Cobleigh
I think most of these companies do as they please. They want to send most of the jobs to china where the workers are paid less. I worked at lesjöfors banddelajer and they laid me off even though I was diagnosed with KÅL and had been there for eight years.
10:24 May 23, 2009 by voidplay
Yes you are right numbers, money and statistics play a more important role than anything else. But then the world is globalised and we can not ignore that. It is always the cheapest, fastest and strongest bidder who wins.
14:03 May 23, 2009 by bocale1
This is exactly where the politic should stand on, making sure that the private companies do not forget their social responsibilities. WE should not forget that those companies, that now are trying to move everything to Asia to save costs, become successful thanks to the investments made by our countries, paid by our people with their taxes. And we are still the ones buying most of their products. Using the general economic negative climate to justify additional increase of profitability is definitely unacceptable.
11:26 May 24, 2009 by spy
Swedish employers are just waking up to the fact that if their staff arrive for work at 0830am stop for an hour(+) at lunch go home at 4pm then they are probaly not working at full capacity. . . I am sure that there is scope for the average worker to be more productive, which would make Swedish companies more competative. The Swedes enjoy the cheap products that open market forces bring but show protectionist tendancies towards Asia. You can not have it both ways!
09:36 May 25, 2009 by Alannah
I agree with "Spy". Starting work with a fika, taking a 1.5 hour lunch and having another few fikas during the day, leaving at 15.00 to pick up kids from dagis, plus an average of one day a week working from home is probably not working at full capacity. So, from the companies' perspective, they can probably easily manage with a few less people. It's nice for employees to work in such a worker-friendly environment but market conditions are tough right now, and like other countries, Sweden and Swedish companies, also have to adjust accordingly.
Today's headlines
Business
Sweden’s growth 'better than expected'
Strong household consumption is helping Sweden's growth. Photo: Mona-Lisa Djerf/SvD/TT

Sweden’s growth 'better than expected'

Sweden’s gross domestic product grew 2.6 percent in the second quarter of 2014 compared to the same period a year earlier, with the economy performing much better than previously thought. READ  

Presented by West Sweden
West Sweden prepares for lobster premiere
Sweden's lobster season starts on Monday. Photo: Jonas Ingman

West Sweden prepares for lobster premiere

It's almost time to catch your own dinner off the west coast of Sweden. The lobster season gets underway on Monday, with fishermen and tourists taking to the seas in the hope of stocking up on the traditional Swedish delicacy. READ  

National
Gas leak leaves Sony staff in Sweden hospital

Gas leak leaves Sony staff in Sweden hospital

An Ozone gas leak at Sony Mobile's offices in Lund has put eight people in hospital, with nine others needing to be checked by doctors. READ  

Elections 2014
Social Democrats get permission to govern
Stefan Löfven is set to become Prime Minister. Photo: TT

Social Democrats get permission to govern

Sweden's parliamentary speaker has given Social Democrat leader Stefan Löfven the all-clear to form a government. On Friday Löfven is expected to meet the heads of the Liberal and Centre parties. READ  

Elections 2014
Vote quirk gives Sweden Democrats extra seats
Sweden Democrat leader Jimmie Åkesson celebrates his party's election success. Photo: Lars Pehrson/SvD/TT

Vote quirk gives Sweden Democrats extra seats

The Sweden Democrats, who became the third largest party in Sunday's election, have learned they will get two more seats than expected due to a quirk in the country's election system. READ  

Tech
Ericsson to axe modems and cut jobs
Ericsson CEO Hans Vestberg, pictured here presenting the comapny's quarterly report in July. Photo: Annika af Klercker/TT

Ericsson to axe modems and cut jobs

Swedish telecom giant Ericsson has confirmed it will cut jobs in Sweden and abroad after the company announced on Thursday morning it would stop developing modems. READ  

Elections 2014
Centre party laughs off Löfven's advances
Annie Lööf speaks after her meeting with parliament's speaker on Wednesday. Photo: Fredrik Persson/TT

Centre party laughs off Löfven's advances

UPDATED: Centre Party leader Annie Lööf has reiterated her reluctance to cooperate across bloc lines with Social Democrat leader Stefan Löfven, as he renews his attempts to form a fresh government. READ  

Elections 2014
Sweden Democrats want prized speaker job
Sweden Democrat party secretary Björn Söder celebrates Sunday's election result. Photo: Anders Wiklund/TT

Sweden Democrats want prized speaker job

UPDATED: As Sweden’s third largest party, the Sweden Democrats "assume" they will be given one of a handful of prestigious parliamentary speaker jobs, party secretary Björn Söder tells The Local. READ  

National
Teens in intensive care after school 'initiation'
Photo: Peder Skrivares school

Teens in intensive care after school 'initiation'

School inspectors are investigating after an initiation ceremony at a high school in Varberg in south west Sweden left four girls in hospital. READ  

National
Pirate Bay Swede 'mistreated' in jail
Peter Sunde. Photo: TT

Pirate Bay Swede 'mistreated' in jail

The brother of Pirate Bay co-founder Peter Sunde has questioned the conditions of his brother's Swedish jail, slamming both the institution and the guards. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Society
What's on in Sweden
Politics
How Sweden Democrats went mainstream
Politics
Scandinavia and Scotland: closer links?
Gallery
Property of the week - Eskilstuna
Sponsored Article
How to start a business in Stockholm
Blog updates

17 September

Deep election analysis (Blogweiser) »

"You think you’re bad? Well I’m American. http://www.youtube.com/watch?v=NFbomLID0vU Deep deep analysis on Swedish election results. Vlog post: https://t.co/tjQgfa5Yie #svpol #val2014 #politics pic.twitter.com/oEK5ADFT8L — Joel Sherwood (@joeldsherwood) September 17, 2014 " READ »

 

15 September

Liten, litet, små & lilla (The Swedish Teacher) »

"Hej igen! Have you ever been confused about when to use “liten”, “litet”, “små” and “lilla”? Today I’m going to sort out how use the adjective “liten” (small) and the different forms of it. Liten or litet? “Liten” is the form we will use when referring to a noun with the gender “en”. For example: Min pappa har en..." READ »

 
 
 
Society
How I became a surf blogger when I moved to Sweden
Gallery
People-watching: September 13th
Society
Why is Stockholm's Södermalm so cool?
Gallery
People-watching: September 11th
Gallery
People-watching: September 13th
Politics
Five possible election outcomes
Politics
Sweden elections: How do they work?
Politics
Sweden elections: Who's who?
Lifestyle
What's on in Sweden
Gallery
Property of the week - Hornstull, Stockholm
Analysis
Five differences between the UK and Sweden
Welshman Jonny Luck is now a chef in Sweden
Society
How I opened my own restaurant in Sweden's Malmö
Sponsored Article
Stockholm tech fest: relive the magic
Gallery
People-watching September 8th
Photo: TT
Politics
Feminists fight for first seats
Politics
Immigration cut push from Sweden Democrats
Sheryl Sandberg says women have "low expectations"
Tech
Facebook exec talks women's limits in Swedish business
Politics
Left Party calls for justice and equality
Politics
Green Party wants 'better world' for kids
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

863
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN