Saab crisis deepens as wages go unpaid

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Saab crisis deepens as wages go unpaid

Saab crisis deepens as wages go unpaid
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Unions at Saab are threatening legal action if workers at the troubled car firm are not paid their wages by Monday.

Saab says it cannot pay the employees because it has not yet obtained necessary short-term funding.

It is in talks with various parties about selling and leasing back its factory and other ways of raising money.

“There can, however, be no assurance these discussions will be successful or that the necessary funding will be obtained,” it said in a statement.

Production was halted for most of April, May and June as Saab could not pay its suppliers.

Legal action by the unions could lead to bankruptcy.

Swedish Industry Minister Maud Olofsson ruled out help from the state, which is already guaranteeing a 400 million euro EIB loan to Saab.

Saab spokeswoman Gunilla Gustavs said it was not possible to say when salaries would be paid: “That depends on when and if we can secure short-term funding, for example through the real estate deal.”

“This is really bad news, and we are working intensely to do something about it. There are no guarantees, but we are not giving up,” she said. “There’s no talk of laying off employees.”

Earlier this week Saab made a payment offer to suppliers in an effort to get production going again.