Ericsson is laying off three thousand employees in Sweden. Photo: Magnus Hjalmarson Neideman / Svenska Dagbladet
Tretusen people ‘ll go from Ericsson. The main issue now is where to go. That big business can get around the law on employment protection is obvious: while the research and development department says up to 800 persons, there are plans to hire 1000 graduates over the next three years. Ericsson’s big cutbacks to cope with the global competition shows the need to reform the employment security to the redeployment security.
the Answers, Algots, form a new, Öresundsvarvet, Saab Automobile. The consequences for companies that don’t adapt in pace with – or preferably before – their markets are well-known in the Swedish business world. From this perspective, it is not unexpected to Ericsson centralizes the production to Tallinn and Nanjing (only prototypes shall be manufactured in Kumla), cut off 1000 administrative services and focuses research and development on the 5G area. A streamlined company is more sustainable in the global competition, but for the 3000 employees who lose their jobs it is of little consolation.
The "significant drawdown" of Ericsson’s production, which CEO Jan Frykhammar announced at the press conference will hit the Kumla and Borås hard. The mayor of Borås, Ulf Olsson (S), mean that it can be "the fiercest battle since the textile crisis" (SVT 4/10). This emphasises the responsibility of senior management, as well as the unions and the ministry of industry, to help the redundant workers to new jobs, training or to start their own business.
Sweden’s legislated job security is of little use when companies operate in global markets in the express transformation. Why should turordningsreglerna be exchanged for the individual to be guaranteed security in the conversion.
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