Scania signs agreement for increased flexibility

Scania signs agreement for increased flexibility

Scania has signed an agreement with the Swedish Metal Workers' Union at
Scania as part of the company's efforts to boost flexibility at the
production units in Sweden. The agreement regulates flexible working
time and flexible staffing so that Scania can adapt human resources to
fluctuations in demand. Both Scania and the Swedish Metal Workers' Union
at Scania are in agreement that a long-term sustainable solution is
required in order to ensure flexibility.

“The agreement will play an important part in our future ability to meet
rapid changes in demand. It enhances our long-term ability to retain
core competence at our production units,” says Anders Nielsen, Executive
Vice President and Head of Production and Logistics at Scania.

For a long time, Scania has worked on boosting flexibility in production
by using various methods. The new agreement means that the time bank
system will continue in essentially the same way. The time bank system
enables compensation to an employee to be held at a stable level, while
he or she works more hours when demand is high and fewer hours when
demand is low. 

Scania also ensures flexibility through agreements on fixed term
temporary employment. Current fixed term temporary contracts will remain
in force under the existing agreement. After these contracts have
expired, the new agreement aims to ensure that the bulk of flexible
staffing will consist of personnel from staffing companies. The parties
agree that the proportion of flexible staffing should not exceed 30
percent of the total number of production employees.

“My view is that Scania's employees will gain greater security in the
long run if everyone has permanent employment. We are also adding rules
and regulations relating to flexible staffing. In addition, extra
personnel on hire will gain a good pathway into Scania, since we will
primarily use staffing companies to fill our vacancies,” says Johan
Järvklo, Chairman of the Swedish Metal Workers' Union at Scania in
Södertälje.

The agreement enters into force on 1 September 2011 and replaces the
existing agreements on flexible working hours at Scania (SFW) and
temporary employment. It does not cover employees working today under
fixed term temporary contracts at Scania - instead their agreements will
remain in force as previously.

For further information, please contact Erik Ljungberg, Senior Vice
President Corporate Relations, tel. +46 8 553 835 57.