Opel workers on streets in jobs threat protest

Nov 6 2009 by Iain Laing, The Journal

THOUSANDS of Opel workers took to the streets yesterday in a protest strike over General Motors’ decision to abandon the company’s sale to new owners which is expected to lead to the loss of 10,000 jobs.

Workers at Opel’s German headquarters in Ruesselsheim vented their frustration and anger at GM, which after months of negotiations decided on Tuesday to scrap the sale of a majority in Opel to Canadian auto parts maker Magna.

“Our trust (in GM) is now zero, and that is the heart of the problem,” Klaus Franz, the head of Opel’s employee council, told thousands of workers in Ruesselsheim, winning applause.

“We will stand together and fight for our future. We will not be defeated, we are proud, we are Opel.”

General Motors expects to axe around 10,000 jobs across Europe as part of its restructuring of Vauxhall and Opel.

The company said jobs will have to go after the announcement that the car giant had decided to scrap plans to sell the brands to Canadian car parts firm Magna.

Union leaders responded to the latest development by saying redundancies were inevitable but pledged to work towards minimising the impact on Vauxhall’s UK workforce.

John Smith, GM’s group vice president, said: “Our plans envisaged a headcount reduction of roughly 10,000 people.” But he did not give details as to how this would relate to individual countries or plants.

Tony Woodley, joint general secretary of Unite, responsed: “I have no doubt that whoever the owner would be, there will be major restructuring of GM operations.

“Inevitably some will go in the UK, but our task is to minimise the number of jobs lost and ensure that those who do go, go voluntarily.

“It is right that GM should hold on to its UK plants because this country is one of its strongest and most loyal customers.”

Tuesday’s announcement that Vauxhall and Opel are to be retained by GM was greeted by cautious optimism among some of the 5,500 workers employed by Vauxhall in the UK, mainly at Ellesmere Port and Luton – but it sparked anger in Germany.

Analysts predict that two German plants could now close, with the loss of thousands of jobs, as a result of GM’s decision.

Workers across Europe were concerned that Magna’s takeover would give an unfair advantage to Opel’s vast workforce in Germany, as their government was willing to give loans worth £4bn.

John Featherstone, Unite’s convener at Ellesmere Port, acknowledged that there would be some restructuring in the UK but added that unions were generally happy to be dealing with GM. “Detail is in short supply and we don’t know what the immediate effect will be, but I am pleased we will be dealing with GM because we know them and we understand their culture – and they know us.”