The Northvolt Crisis: Risk of Losing Competence

Many who are affected by Northvolt's massive layoffs in Skellefteå may choose to leave the country – and take their expertise with them – when they finish at the factory. I see such a risk, and that's why we're mobilizing now, says Minister for Labour Market and Integration Mats Persson (The Liberals).

» Updated: October 02 2024

» Published: September 27 2024

The Northvolt Crisis: Risk of Losing Competence
Photo: Pontus Lundahl/TT

On Friday, Mats Persson is traveling to Skellefteå to form an opinion about the situation after battery manufacturer Northvolt's major layoff notice on Monday.

I'm going there to take part in the local effort, where the municipality and the state are cooperating, and of course to listen to the picture presented by the representatives of the employees, he says.

He himself received the layoff notice "with dismay".

All those people who are affected by this and who are worried now and who are waiting to hear what will happen to them – it's clear that we all sympathize with them, he says.

Time pressure for non-Europeans

For non-European employees, it's a matter of finding a new job within three months from the last working day, otherwise, they will be forced to leave the country.

But you also meet a strong labor market and have good opportunities to find another job, and thus be able to stay in Sweden. We would like nothing more than for hardworking people from other countries to create a future in our country, he says.

He sees, however, a risk that they will leave Sweden, and take with them the competence they have in an area considered important for the green transition.

We are making a strong effort just to ensure that we can offer the employees other jobs in the region, or for that matter other jobs in Sweden, precisely because it is a unique competence that Sweden needs.

"Review the rules"

Skellefteå municipality also needs employees in healthcare and social services and could consider retraining former Northvolt workers. Even local IF Metall believes that workers would be interested in it. However, the median salary for a healthcare assistant in Skellefteå is 25,121 kronor. To obtain a work permit, a salary of 28,480 kronor is required.

We believe that you need to review these rules. We have a need for labor in the public sector. There, we have our collectively agreed lowest wages, and we believe that they are the reasonable ones to use, says Kim Bodén, chief negotiator at Skellefteå municipality.

Mats Persson is not bringing any new messages or promises to Skellefteå.

We have had and have problems with the exploitation of foreign labor in Sweden, and then this has been a measure to prevent people from being exploited. Now, I welcome a discussion about exactly what salary level you should have, says Persson.

Over 1,700 people work at Northvolt in Skellefteå, Västerås, and Stockholm with work permits from third countries, i.e., outside the EU.

According to Northvolt's website, the company has 6,500 employees globally, of which 3,800 worked in Skellefteå before the summer.

The company has expanded rapidly. By the end of 2023, it had a total of 5,800 employees from 160 countries, according to the annual report.

Sources: The Migration Agency, The Employment Agency, Northvolt

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Weekend Push for New Industrial
2 MIN READ

Weekend Push for New Industrial Agreement as Deadline Looms

Swedes Opt for Europe as
3 MIN READ

Swedes Opt for Europe as US Travel Bookings Drop 30 Percent

Energy Efficiency Boosts Villa Prices
1 MIN READ

Energy Efficiency Boosts Villa Prices in Sweden's Real Estate Market

Elon Musk's XAI Acquires Platform
1 MIN READ

Elon Musk's XAI Acquires Platform X in Major Tech Move

Inflation Concerns Drag Down Wall
1 MIN READ

Inflation Concerns Drag Down Wall Street Indices

Sweden Seeks New Investors for
1 MIN READ

Sweden Seeks New Investors for Bankrupt Northvolt Battery Firm

US Inflation Surprises with Higher
1 MIN READ

US Inflation Surprises with Higher Than Expected February Rate

Li Ka-Shing Halts Sale of
1 MIN READ

Li Ka-Shing Halts Sale of Panama Canal Ports Amid Beijing Pressure

Princess Madeleine Addresses Criticism Over
2 MIN READ

Princess Madeleine Addresses Criticism Over New Skincare Venture

Stockholm Stocks Slide 4.5 Percent
1 MIN READ

Stockholm Stocks Slide 4.5 Percent in a Week as US Inflation Hits

French Inflation Dips Below Expectations,
1 MIN READ

French Inflation Dips Below Expectations, Impacting ECB Decisions

Cautious Consumer Spending Sees Slight
1 MIN READ

Cautious Consumer Spending Sees Slight Uptick in Sweden's Retail Sales

SSAB Faces Financial Supervisory Authority
1 MIN READ

SSAB Faces Financial Supervisory Authority Probe Over Reporting Rules

79,000 Swedes Face Student Debt
1 MIN READ

79,000 Swedes Face Student Debt with Enforcement Authority in 2024

Royal Expert Questions Princess Madeleine's
3 MIN READ

Royal Expert Questions Princess Madeleine's Skincare Venture

Gold Prices Reach New Heights
1 MIN READ

Gold Prices Reach New Heights as Trade Tariff Concerns Grow

Asian Markets Tumble as Investors
1 MIN READ

Asian Markets Tumble as Investors Brace for New US Tariffs

Trump's Tariff Plan Could Drive
2 MIN READ

Trump's Tariff Plan Could Drive Up Car Costs, Impact US Market

Ubisoft and Tencent Invest $1.25
1 MIN READ

Ubisoft and Tencent Invest $1.25 Billion in New Gaming Subsidiary

Sweden to Build Major Carbon
2 MIN READ

Sweden to Build Major Carbon Capture Facility in Stockholm by 2028

Wall Street Dips as US
2 MIN READ

Wall Street Dips as US Car Giants Slide on New Tariff Announcement

Vattenfall Prepares Autumn Application as
2 MIN READ

Vattenfall Prepares Autumn Application as Sweden Backs Nuclear Expansion

US Car Tariffs Threaten Swedish
2 MIN READ

US Car Tariffs Threaten Swedish Auto Industry, Warns Dousa

Nordic Nations Unite to Tackle
1 MIN READ

Nordic Nations Unite to Tackle Unsafe Products from Temu and Shein

Volvo Recalls 73,000 Hybrids Over
1 MIN READ

Volvo Recalls 73,000 Hybrids Over Fire Risk in Battery Charging

Four Charged in Nasdaq Stockholm
2 MIN READ

Four Charged in Nasdaq Stockholm Insider Trading Scandal

European Car Stocks Drop After
1 MIN READ

European Car Stocks Drop After US Tariff Announcement

Trump Warns EU and Canada
1 MIN READ

Trump Warns EU and Canada of Higher Tariffs Over Economic Moves

Sweden's FI Pushes for Clearer
1 MIN READ

Sweden's FI Pushes for Clearer Mortgage Rate Discount Notices

Trump's Trade Tariffs Add Pressure
2 MIN READ

Trump's Trade Tariffs Add Pressure to H&M's Struggling Sales

US Implements 25% Car Tariffs
2 MIN READ

US Implements 25% Car Tariffs to Boost Domestic Production

Sweden to Cut Ties with
3 MIN READ

Sweden to Cut Ties with Underperforming Job Placement Firms

US Tariffs Trigger Global Stock
1 MIN READ

US Tariffs Trigger Global Stock Market Dip; Volvo and Banks Hit Hard

SBAB Increases Fixed-Rate Mortgage Interest
1 MIN READ

SBAB Increases Fixed-Rate Mortgage Interest by 0.10 Points

Second-Hand Market Sees Over 40
1 MIN READ

Second-Hand Market Sees Over 40 Percent Drop in February

Tokyo Stocks Dip as US
1 MIN READ

Tokyo Stocks Dip as US Tariff Threats Shake Asian Markets

Japanese Car Stocks Tumble After
1 MIN READ

Japanese Car Stocks Tumble After Trump's Tariff Announcement

US Considers Lower Tariffs for
1 MIN READ

US Considers Lower Tariffs for China in Tiktok Sale Deal

Trump's Vehicle Tariffs Spark EU
2 MIN READ

Trump's Vehicle Tariffs Spark EU Regret and Market Reactions

Wall Street Dips as Traders
2 MIN READ

Wall Street Dips as Traders Brace for Trump's Tariff Announcement