Opel has been bleeding money for the past 12 years and analysts predict that it will post a total of US$1billion operating losses annually until 2021. General Motors wants to restructure the ailing carmaker and turn it around. This, however, involves not only collaborating with PSA Peugeot Citroen, but some serious cost cutting as well.
Industriegewerkschaft Metall, the Industrial Union of Metalworkers that is (thankfully…) more commonly known as simply IG Metall, is the most prominent union in Germany and has some really serious clout with both manufacturers and the government.
IG Metall said in a letter to the 20,800 employees in Opel’s German plants that it wants the carmaker to rule out compulsory redundancies “through 2016 and beyond” and agree with the union on a new deal by October 26.
That is just five days before GM announces its third-quarters result, which is also the last day Opel can defer the 4.3 percent wage rise to its German workers if the two parties haven’t signed a new deal.
On its part, the company stated that it wants a deal as soon as possible and is talking with IG Metall “on the strategy of the German plants. As soon as results are achieved, Opel will inform the public.”
The German automaker has announced that it will close its Bochum plant when the Zafira Tourer that is assembled there is replaced, two years later than the 2015 date it had originally set.
By Andrew Tsaousis
Story References: Autonews / Reuters
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