Saab says salaried pay is on hold

July 26, 2011 at 2:29 PM
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TROLLHATTAN, Sweden, July 26 (UPI) -- Struggling Swedish automaker Saab said its white collar employees would not be paid until investors sent payments to the firm.

Saab has had to suspend production in its factory in recent months as suppliers would not deliver needed parts due to late payments. Now Saab said its white collar staff would also be affected by the financial crunch.

Saab, meanwhile, is attempting to pay back a $346.6 million European Investment Bank loan to pave the way for Russian businessman Vladimir Antonov to take over 29.5 percent share of the company.

The EIB is limiting Saab's options, but paying back the loan would allow the firm to shake off restrictions that came with the loan, The Local reported.

Swedish news agency Tidningarnas Telegrambyra reported that Saab was talking with stakeholders to find a way to resolve the most recent financial setback.

Anette Hellgren, president of Unionen, which represents white collar workers at Saab, said, "The company rang. They said that there had been a delay and that the money (for paychecks) should be paid out as soon as possible."

The union, she said, had funds available for loans to help its members.

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