Millions in bonuses but zero for unpaid consultants at Northvolt

Northvolt intends to pay employee bonuses to prevent staff attrition, while simultaneously refusing to compensate contracted consultants who have worked without pay.
– Crazy that they’re paying bonuses but not our wages, says "Ellen".

Ellen and Mia have gone more than three months without pay, as Northvolt has not paid the consulting firms that hired them.

Ellen and Mia have gone more than three months without pay, as Northvolt has not paid the consulting firms that hired them.

Foto: Anna Wikner

Skellefteå2025-02-07 11:35

During Northvolt's mass lay-offs last autumn, some consultants were kept on because their specialised skills were considered essential for production. Their contracts were extended or even renewed. But they haven't been paid since.

– We haven’t been paid for October, November, or December, yet they still expected us to keep working, says "Ellen."

Norran met with "Ellen" and her colleague "Mia," both of whom asked not to be named. They, along with about twenty other specialists, came to Sweden in 2023 to work for Northvolt. The work was good, and everything went well until last autumn, when Northvolt laid off a quarter of its staff and declared Northvolt Ett Expansion, a subsidiary, bankrupt.

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Despite extensive communication between the consulting firms and Northvolt, no salaries have been paid out yet.

– We were told we were vital for production and were even offered jobs at Northvolt. But it never happened; the jobs never materialised, and our pay was halted when they stopped paying WA Consultants (the UK company that recruited Ellen and Mia) for our services, says Mia.

In December, WA Consultants warned them that staying at Northvolt was at their own risk. WA Consultants had already paid the consultants' September wages themselves. Northvolt hasn't paid anything since.

– We told them: don’t go to work, because there’s no guarantee you’ll be paid. Our company won’t go under just because Northvolt isn’t paying, but it’s awful for the consultants—especially since they were asked to stay because they were needed, says a department manager at WA Consultants.

Northvolt’s head of communications, Matti Kataja, denies that any consultants were considered "critical" and asked to stay.

– Consultants weren’t part of Northvolt’s lay-offs because they aren’t our employees. Their services became unnecessary during restructuring, and their contracts were terminated by mutual agreement, he wrote in an email to Norran.

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Matti Kataja Northvolt

But the consultants’ contracts were still active when their payments stopped. This is evident from documents reviewed by Norran.

Why should some work for free just because they were hired through a consulting firm, not directly by Northvolt?

– Northvolt doesn't expect consultants to work without pay. After we filed for chapter 11, some consulting firms offered consultants the option to keep working without guarantees from their employers. It was their choice to take the risk, writes Kataja.

But the consulting firms have no other jobs for the consultants—if the client has no assignments, the contracts end, says Christian Schanner, COO of Ecocci, a self-employment company used by several consultants.

He says Northvolt never disputed the invoices—they just refused to approve the hours without saying why.

– It’s terrible, and I really feel for the consultants. A whole group of them suddenly had their hours zeroed out. Northvolt claimed chapter 11 prevented us from claiming for work done before November 21. But that’s not true, and so we’re now pursuing debt collection, says Schanner.

Ecocci and two other companies have taken their claims to the Swedish Enforcement Authority (Kronofogden), which has issued a payment order. The claim is for about 11 million kronor, but that's just part of the total owed to consulting and staffing firms.

Even though Northvolt hasn't paid the consultants, they've started two bonus schemes. The first, in December, covered 260 employees, offering bonuses worth three to eight extra months' salary. The second, announced just days ago, covers 1,800 Skellefteå factory employees, who can get up to eight percent of their base salary as a bonus if they meet production and quality goals. The total cost of these bonuses is expected to be 11.4 million kronor.

Kataja says the bonuses are meant to keep, reward, and pay employees during a critical time.

– This programme focusses on the employees here in Skellefteå, who are among the most experienced in Europe when it comes to battery production. The earlier programme aims to retain key personnel with expertise that is difficult to replace. Programmes like this are standard in these situations, he writes in an email.

But is it right to prioritise bonuses for employees while refusing to pay consultants for work they've already done?

Kataja didn't answer that. Instead, he wrote:

– We are limited in our ability to pay suppliers for goods and services received before the chapter 11 filing. We are following this process, which is designed to ensure that all suppliers have an equal opportunity to be paid.

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No shopping spree. After three months without pay, neither Ellen nor Mia can afford anything beyond the essentials.

Northvolt claims its chapter 11 filing in Texas prevents it from paying debts. Its lawyers have even threatened legal action against creditors who have filed claims with Kronofogden—a move Christian Schanner calls absurd.

– Many people probably believed Northvolt and, as a result, haven't filed claims. But U.S. laws don't apply here. My advice is: everyone should file with Kronofogden, he says.

Ellen and Mia haven’t worked since December due to lack of pay guarantees. They want new jobs and a normal life.

– Three months without pay is not easy—it’s expensive to live in Sweden. Most of our other colleagues have gone home. At the same time, I hope this gets resolved because I don’t know what will happen to my claims if I leave the country, says Ellen.