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Spanish unions reach agreement with Magna on Opel (Roundup)
Oct 22, 2009, 15:04 GMT
Madrid - Spanish trade unions and the Canadian-Austrian Magna consortium have reached a basic agreement guaranteeing the future of a Spanish Opel factory for the next 10 years, Spanish Industry Minister Miguel Sebastian said Thursday.
The agreement contained a 'competitive' industrial plan for the plant of the General Motors subsidiary in Figueruelas, northern Spain, according to the minister, who mediated in the talks.
The plan foresees cutting around 900 jobs out of the total 7,500 at the factory. Magna's previous plan had included slashing 1,300 jobs.
Magna is preparing to take a majority stake in the struggling car maker, which is expected to cut 10,500 jobs in Europe. Opel has factories in Germany, Austria, Belgium, Britain, Hungary, Poland and Spain.
Magna had faced opposition from Spanish trade unions, which announced four one-day work stoppages to protest job cuts.
Magna was now willing to guarantee that no changes will be made at the factory until the summer of 2011, according to media reports. The agreement will only enter into force after being approved by a committee representing the Figueruelas employees.
The German government is underwriting the Magna deal with 4.5 billion euros (6.6 billion dollars) in loans and credit guarantees.
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