Integrative Strategy, Competitiveness and Employment : a Case Study of the Transition at the Swedish Truck Manufacturing Company Scania During the Economic Downturn in 2008-2010

The purpose of this article is to investigate how and why the truck manufacturer Scania adapted to the economic downturn between 2008 and 2010 in the manner it did. First, Scania signed a crisis agreement on fewer working hours and lower wages, and, later, it signed an agreement stipulating fewer working hours, but without wage reductions. Both of these agreements were combined with investments in competence development and education as well as with the decision not to give notice to the employees, which was uncommon among Swedish companies. It is claimed that the company wanted to strengthen the competitiveness by integrating the unions and the employees even more in the business. An important prerequisite was the company’s Flexibility Agreement, which allowed the company not to give temporary employees new contracts and to let temporary employees leave the company as soon as their maximum employment period of six months expired