Stockholm - Heavy-vehicle maker Scania is mulling wage cuts to avert job losses in the wake of weaker demand for trucks because of the financial crisis, Swedish radio news reported Thursday.
Management and unions have not launched formal negotiations, but the company has previously scrapped some bonus payments and has let 2,000 temporary employees go.
Scania spokesman Erik Ljungberg said options being studied included the agreement signed last month between the blue collar union IF Metall and the Association of Swedish Engineering Industries that allows pay cuts of up to 20 per cent in return for not firing workers.