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Car Industry

Reinfeldt Calls Volvo’s Plans "Shocking"

Published måndag 2 mars 2009 kl 12.05

Plans by Volvo to raise the ceiling for the salaries of the 250 highest managers which were revealed last week have received massive criticism.  In Swedish TV-programme Agenda on Sunday night, Swedish Prime Minister Fredrik Reinfeldt joined the critics and called the plans “shocking”.

The reason for the increase is that these salaries currently are lower than those in competitive companies. According to Finn Johnsson, who headed the committee in charge of the decision, the company wants to ensure that they keep their key players. This does not become less important in times of financial difficulty, but rather the opposite, Johnsson said in a press release.

However, considering that 7000 Volvo employees in Sweden alone are losing their jobs the criticism against the scheme has been severe. Fredrik Reinfeldt told Agenda that the suggestion is a provocation to many, as the company is in such dire straits. The government recently turned down Volvo’s plea for financial assistance. According to Reinfeldt this is just proof that they took the right decision. There are obviously funds available to the company, Reinfeldt told Agenda.

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