Swedish newspaper svenska Dagbladet information is "most certainly not real." It says Per Nordlander, trade union negotiator for the Swedish association of graduate Engineers at Ericsson, to New Technology. "It can last an internal fight about who gets to decide".
3000 employees could be forced to leave telekomjätten Ericsson in Sweden. This writes the Swedish newspaper svenska Dagbladet that included some of the secret internal documents. The saving would mean that all production lost in Sweden, but also to officials and those who work with research and development can be affected.
Ericsson has in six years, reduced the workforce by a quarter, from 20000 employees 15000. And then the former president:His Vestbergs the sudden departure of the 25 July this year, the mood has been tense in the company: successor Jan Frykhammar be seen as a short-term solution. To and with the minister for enterprise, Mikael Damberg said to New Technology for a couple of weeks ago that he was troubled.
– It is one of Sweden’s most important companies, so I have of course been in contact with the company, both in connection with the ceo’s departure and afterwards.
But the information that comes to light in the Swedish newspaper svenska Dagbladet article gives Per Norlander, trade union organisation negotiator for the Swedish association of graduate Engineers at Ericsson, does not give much for. According to Norlander they do not exist in the current negotiations on the upcoming austerity package.
” basically we are sitting in the negotiations which we are not commenting on. What we are commenting on is the fact that it is pouring out things that look like real data. But as with the greatest security not. It is made of massive amounts of power point-presentations that all looks to be clubbed by the board of directors, but is usually fairly loosely shaped fantasies.
Read more: Data: Ericsson closes all production in Sweden.
In the Swedish newspaper svenska Dagbladet is the imagination of quite detailed.
– It is the move that is reminiscent of a decision support or a plan or something, but this is nothing that comes out of any negotiation. This is probably someone who want it to go to this way.
You mean that it is a deliberate leak?
– Yes, absolutely. This stuff is pouring is not in the path by mistake. It is absolutely someone who have seen a purpose in sending out something that, at the very least look credible.
What purpose is it?
– One can imagine two scenarios, if we just speculate freely. Either you want to reinforce the message so that it is not possible to back away from it. Or also, you want to uncover it to get a debate about change. When working with major changes in secrecy in the management is normally quiet. In a company where everyone is loyal delicious. When it pops up on such things it probably means that somewhere there is a disagreement or any kind of struggle about who should get to decide.
” But we can only speculate. It, however, we have seen is that it seems to originate from one and the same unit, one of the major business units. If you have to be konspirationsteoretiska here, one can say that all of the information, true or not, comes from the Business Networks Products.
What has the immediate consequences become of it?
The most pressing concern all the employees or members of the Ericsson suffering from this. This is the only thing it talked about. The talk is not about smart, new solutions or services, or business models. The talk only about these numbers. So it will probably be a while in the future. And it is not good.
How do you handle it?
” I said, “you have to trust us”. We are in negotiation and this is not a definitive plan. It is not at all certain that it ends like this.
” this is nothing that is on the table, nothing that there is a basis for decision-making. But this is someone who might want it to be this way. I am convinced that somewhere in here there are those who have strong opinions about where plants should be located or where the research should be done. Or who should do what. And then exercising it the power struggle to get the right thing.
If it be so, as it says in the documents, what would be the consequences?
– You can use so many parables: man shoots himself in the foot or they saw off their own legs. But the idea we have tried to explain both internally and externally is that research and development in Sweden is one of the cornerstones in the Ericsson success. Much of what you are actually earning money coming from quite informal innovation in Sweden. The we do not want to compromise and it is about research and development.
– But what you do not understand, it is that the link to the factories is extremely important for this type of products. It is electronics we’re talking about. Extremely advanced electronics, with big challenges. It is climate-proofing, they should be able to withstand heat and cold and earthquakes. Industrialiseringssteget from design to production is very sensitive. If you do it right, where it will have the high quality, low production cost and can compete in the market. Therefore, research and development to be close to the factory.
Read more: Worst of the crisis for Ericsson – so far
And not be moved to other countries?
” No, and absolutely not to any other time zone with people who, for various reasons is not so easy to communicate with. Then, you solve these problems. Then you can put something in production that is not as good.
But in a larger perspective maybe Ericsson should stop making hardware in order to cope with structural change?
” Well… there are many who claim it. But we are very far from the point where you can say that Ericsson no longer need to sell radiohårdvara.
Why?
” It is deeply specialized for its task. The challenge with these products, except that they shall sit in a vulnerable position physically, is that they will be able to handle huge amounts of traffic. All these features sitting on something that sits in a fabriksskorsten or out in the heather. They are so special that their own hardware is still very, very, important. Then, make Ericsson fewer variations of hardware and resolve more with the software, it is a different issue. But it is not so that you can buy mobilbasstationer on the town and just download the on own software.
how to outsource the manufacture is not an option? It is only Ericsson that has the right skills?
– In the long term, would you be able to build the skills elsewhere, but it is not so that it automatically becomes better to put it in a low-cost countries. The pieces we talk about in Sweden, it is not particularly large-volume production. But it is precisely this industrialiseringsfasen between design and manufacturing that is important. Where the cost per man-hour is not the critical but the result of the process.
And the hardware is closely related with the software?
– Yes, absolutely. The hardware is defined by software.
– it says in the Swedish newspaper svenska Dagbladet would resemble the end result, it would be very bad for Ericsson in Sweden. And if not Ericsson in Sweden is strong, we have hard to see that Ericsson would be able to compete in the future.
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