Ericsson in reward dispute with two employees

Two employees at an Ericsson unit in Sweden claim that they are entitled to almost 2 MEUR each for an improvements proposal they turned in to Ericsson. Ericsson rejects the application and says the innovation is worth only a few hundreds euros. According to locally negotiated union deals the employee should be entitled the value of half of the saving the company achieves with the changes in the improvements proposal. The union now handles the legal process for the two employees against the company. According to the Union Ericsson is now saving 8 million euro a year by using the input from the two employees.