Opel union chiefs reject local talks on cuts

Opel union chiefs reject local talks on cuts

Automotive News | March 26, 2012 – 11:43 am EST

FRANKFURT (Reuters) — Union representatives at General Motors’ money-losing European unit Opel/Vauxhall said today they would not engage in plant-by-plant talks on restructuring measures, preferring a Europewide strategy to save factories and jobs.

“We will not negotiate with you on a local level,” European labor representatives said in an open letter to Opel CEO Karl-Friedrich Stracke published today.

People familiar with the company’s thinking told Reuters last week that Opel managers would present a business plan to the supervisory board on Wednesday that might involve closing two plants in Europe to trim capacity by 30 percent. The two plants considered most at risk are in Bochum, Germany, and Ellesmere Port, England.

“Labor forces are gearing up to avoid being played off against one another by management,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen.

Opel CEO Stracke said this month there were “no taboos” in the company’s drive to cut costs, though he would honour an agreement not to shut any sites before the end of 2014.

Opel, based in Ruesselsheim, near Frankfurt, made that agreement with unions in 2010 in exchange for concessions from labor worth 265 million euros ($351 million) a year.

A spokesman for Britain’s Department for Business, Innovation and Skills, asked whether the government had offered incentives to secure the future of the Ellesmere Port plant, said: “They haven’t asked for anything. Obviously we have been talking to them, and we’ve been putting the case about why the UK is a good place to do business and invest here. Other than that, it’s a commercial decision for them.”

GM has grown increasingly impatient with the chronic losses in Europe, including $747 million last year. It has joined forces with France’s PSA/Peugeot-Citroen saying the alliance will lead to $2 billion of annual cost savings.

The two automakers will start work on joint projects by the end of 2012 and have each appointed five executives to a steering committee to oversee and explore areas of cooperation.

In an e-mail to staff last week, Stracke said, “The entire industry is still facing very weak automotive markets in Europe. This is why we have to act now in order to improve profitability on a sustained basis.”

He also said the company would keep a promise to invest 11 billion euros by 2014 and bring 30 new products to market.

Share
Seniority Lists
Recent Posts!
Bargaining Committee

Chairman
Mike Herron
President
Tim Stannard
Zone at Large – 1st
Danny Taylor
Zone at Large – 2nd
Mark Wilkerson
Committeepersons
Joe McClure
Chad Poynor
Steve Roberts
Derek Lewis
Bill Cundiff
Kirk Zebbs
Don Numinen
Jay Minella
Danny Bragg
Chris Hill
Rashad Thomas
Keith Oswald
Chris Brown

1853 Officers

President
Tim Stannard
Chairman
Mike Herron
Vice President
Darrell DeJean
Financial Secretary
Mark Wunderlin
Recording Secretary
Peggy Mullins
Trustee (3)
Jay Lowe
Dave Clements
Dave Spare
Sgt. at Arms
David C Spare
Guide
Ashley Holloway
E-Board at Large (2)
David Ryder
Steve Roberts
GM Unit Chair
Mike Herron
Leadec Unit Chair
Larry Poole
Ryder Unit Chair
Patrick Linck
AFV Unit Chair
Neil Osborne
Retiree Chair
Mike Martinez

Get Text Alerts



asdasdsd

*Standard text messaging rates may apply from your carrier