No Wage Guarantee in American Process

Northvolt has applied for reconstruction in the USA. But in an American process, the Union's members will not be able to take part in the Swedish wage guarantee, according to the newspaper Kollega.

» Published: November 21 2024

No Wage Guarantee in American Process
Photo: Magnus Lejhall/TT

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The Swedish state does not pay out any wage guarantee if the company has not initiated a reconstruction or bankruptcy in Sweden, says Hans Andersson, chairman of the Swedish Reconstruction and Bankruptcy Administrator's Association to the newspaper.

If the company only initiates a Chapter 11 procedure in the USA, the obligations to employees in Sweden remain, says Andersson. If Union's members at Northvolt do not receive their salaries, the union can however request the company's bankruptcy in a Swedish court.

If Northvolt does not pay out salaries on time, the employee or the trade union can collect the salary through the bailiff and ultimately request that the company be declared bankrupt if the salary is not settled.

In the event of future unpaid salaries, the Union needs to assert its members' rights through so-called wage collection, says Filip Vujcic, union lawyer at the Union.

According to Swedish bankruptcy rules, a company reconstruction in the USA does not constitute an obstacle to trying a member's bankruptcy application in a Swedish court, says Vujcic.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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