Opel's Spanish unions reject Magna offer

20th October 2009, Comments 0 comments

Unions are calling for a vote on strike action after Magna's new plan did not give details on information about future production and conditions surrounding job losses.

Madrid – Unions at Spain's Opel plant Monday rejected a plan on its future by its Canadian auto parts manufacturer Magna International and called for a vote on strike action, a union member said.

Canadian auto parts manufacturer Magna International wants to cut around 1,300 of the 7,000 staff at the Opel factory in the northern town of Figueruelas and move some production to Germany.

"The last proposal from Magna has been rejected," said Julio Vela, a member of the works committee and of the UGT union.

He said Magna "did not supply answers to some of the demands" of the workers, in particular for more information about the future of production at the plant and on the exact number of job losses and the conditions.

He said that the unions have called a vote for Tuesday on whether to strike.

Representatives of Magna, unions and the socialist government have held several meetings since last week in an attempt to reach an accord on the future of the plant.

Spain's industry ministry said the government "would continue to act as a mediator to bring the parties' positions closer in order to reach a satisfactory agreement for all".

In September, struggling US giant General Motors announced the sale of a majority stake in its European arm Opel to Magna and its partner, Russian state-owned lender Sberbank.

Magna is reportedly planning to cut 10,500 jobs across Europe.

The European Commission on Friday raised the prospect of a repeat sale of Opel, warning that planned German aid for the current bid could breach EU competition rules.

AFP / Expatica

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