Saab struggles to survive

Major union files bankruptcy petition against Saab

5:37 min

The blue collar worker IF Metall union filed a bankruptcy petition against Swedish carmaker Saab in district court Tuesday afternoon.

Union leader Stefan Löfven said it had been a hard decision to take but they could not jeopardize their members wages.

"It is of course very difficult because we believe in Saab and we wanted to go through a reorganisation and we are looking forward to a court decision in favour of reorganisation but at the same time we cannot risk jeopardizing our members wages so we have to take this step right now." Stefan Löfven told Radio Sweden. 

On Monday, the court of appeals in western Sweden announced that it will take another look at whether or not the company should be given protection from bankruptcy.

If the court grants this protection within the next few days, the bankruptcy procedures filed by IF Metall and other trade unions will be halted, and the state will pay out salaries within a week.

If the court again goes against reorganisation, union members at Saab will have to wait some weeks before they are paid through the state guarantee scheme.

"It is very tough, some members will have some margins but we also have members who don't have any margins at all and we have helped some get a loan from the bank while waiting for the ordinary wages," Stefan Löfven said.