GM’s Euro-Trash: All Agree On Opel Deal, Except For The Union Boss

I shall not be moved: Opel union chief Einenkel

Messy, messy, messy: Canâ?™t even close a proper deal with the unions. GM and the unions have an agreement. It is basically as reported this morning. The deal has the signatures of management and unions. One signature is missing, reports Die Welt: That of Bochum works council chief Rainer Einenkel.

With the missing signature, there are doubts whether the deal is legally binding. Says Die Welt: �The courts may have to decide.�

Both GM and the metal worker union IG Metall are interested in bringing the matter behind them. Steve Girsky needs to report mission accomplished to Detroit (even if the result is dubious). The metal worker union already has its eyes on a much bigger prize: The new round of collective bargaining.

The unions want a raise for all 3.7 million German metalworkers, and the chances are good. Volkswagen reported record earnings, BMW and Daimler also have solid profits. The unions want 5.5 percent more this year. They would have bargained for more, would Ford and Opel not be in the poorhouse in Europe. GM wants to pay its workers zero percent more, �but the Americans don�t know the German system well enough,� Opel-union boss Schäfer-Klug told Focus. �Germany has a collective bargaining system, and Opel can�t undermine it. Neither IG Metall nor the other automakers will accept that.�

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Opel, union come to terms on new labor deal

General Motors' Opel division has come to terms with workers on a restructured labor deal. The new agreement will secure about 20,000 European jobs.

After several weeks of negotiations, Opel and the IG Metall union came to terms on a new “Deutschlandplan” (Germany-wide plan) on Thursday. The new labor agreement will secure jobs and production for workers while giving Opel a break on pay raises.

The new deal guarantees production at Opel's Bochum plant, which builds the Zafira Tourer, through at least 2016. The plant was originally earmarked to close at the beginning of 2015. Following the end of production of the Zafira Tourer, Opel will turn the plant into a warehouse, securing 1,200 jobs.

The new agreement also guarantees the addition of a second model at Opel's Rüsselsheim plant after 2015.

In exchange for the plant guarantees, IG Metall agreed to freeze all German wages until 2015.

“Today is a good day for Opel and a good day for GM. Opel is and remains a key part of our global GM business,” said General Motors Vice Chairman and Opel Supervisory Board Chairman Steve Girsky. “This “Deutschlandplan” is an important milestone for Opel to return to profitability by the middle of the decade.”

Opel and its sister company Vauxhall have lost $18 billion since 1999.

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