Saab union wants to make Saab go bankrupt

Article by Christian Andrei, on September 12, 2011

Saab goes up against another major threat as the union said that it will make a legal move next week for the automaker to go bankrupt. Saab’s workers have yet to receive their pay for August. Unions have the right to push the company into bankruptcy so that a state scheme could be activated for the payment of their salaries.

White collar union Unionen will make the first step to bankruptcy next week. Legal officer Martin Wastfelt said last Friday that the move will be made “within a couple of working days."

On the other hand, IF Metall, the blue collar union, and a smaller engineers union preferred to wait but hoped for a quick wage solution, says Autonews.

Last Friday, IF Metall chief Stefan Lofven told reporters that it’s possible that its members will get their money from Saab but then, the money has to be deposited in the bank accounts within two days. Saab said that on Monday, it will file a new application for court protection from creditors. Many industry observers think that the automaker will eventually collapse.

However, there is a lawyer who said that the reconstruction, the plea for the process, will be denied again. Saab’s production has been put on hold as the suppliers remain unpaid.

Saab’s owner, Swedish Automobile NV, said that it hasn’t given up yet. Swedish Auto CEO Victor Muller said that it may file an appeal by Monday over a lower court decision last Thursday that denied its application to be protected from creditors.

Topics: saab, bankruptcy

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