World number two truck
maker Volvo said on Monday its Powertrain unit had agreed with unions
on cutting working hours and wages at its operations in Koping, in
central Sweden.

company said in a statement the deal meant the company would revoke
redundancy notices given to 25 white-collar employees at the unit.

deal, which entails a 20 percent cut in working hours and a 10 percent
wage reduction, would be in force from June 1 through to March 30,
2010, it said.

A preliminary deal had also been struck with the
main blue-collar union which, if finalised, would mean that 600 workers
given redundancy notices in April would not be laid off, the company