Thyssen Krupp has now said it would pay out an extra month's wage, in a bid to stem the bleeding. About 40 staff members have already gone over to Saab. The local Sydöstran newspaper reported that the company made the offer to all 900 employees in Karlskrona and Malmö.
Local reports said Thyssen Krupp was concerned staff turnover would endanger its ability to deliver on time.
Last month, the business daily Dagens Industri reported that some 200 Kockums staff had expressed interest to work for Swedish defence contractors Saab, which is said to want to quickly assemble a submarine unit after continued concern in Sweden that Kockums' longterm plan was to cease all production.