Opel workers to strike over General Motors U-turn

Nov 5, 2009, 8:12 GMT

Berlin - Workers at all four of troubled-carmaker Opel's plants in Germany were set to strike Thursday, following owner General Motors' surprise announcement that it would not now sell off its European subsidiary.

The Detroit-based automotive giant stunned both the German government and Opel employees on Wednesday, when after months of negotiations to sell the firm to an Austrian-Russian consortium, it announced it would now restructure the firm itself.

Opel employs some 50,000 people across Europe, half of them in Germany.

At the Ruesselsheim plant where the majority of Germany's Opel workers are based, some 8,000 were expected to 'flex their muscles' by downing tools at 11am (1000 GMT) on Thursday, broadcaster NTV reported.

Unions fear that GM will now cut more jobs in Germany than had been planned under the previous deal, in which Austrian-Canadian parts manufacturer Magna, in cooperation with Russian bank Sberbank, would have taken control of Opel.

GM said Wednesday that it would cut 10,000 jobs across Europe - the same number as had been planned by Magna - and may close factories.

GM's decision has been received as a serious loss of face for German Chancellor Angela Merkel, who had invested much political capital in forging the Magna sale ahead of Germany's general election in September.

GM has given little indication so far of what its own restructuring plan for Opel, which suffers from excess production capacity amongst other problems, will involve.

The Magna deal had been criticized by other European countries where Opel has factories, such as Spain and Britain, because it appeared to safeguard German jobs over economic logic.

However senior Christian Democrat (CDU) parliamentarian Volker Kauder told broadcaster ZDF on Thursday that 'We are expecting from Opel and GM that the jobs in Germany will be kept.'