By on October 26, 2012

Down to the wire, and nothing: German unions had set Opel a deadline until today to come to an agreement about the future of Opel. The unions had offered to forgo a 4.3 percent pay hike and waive future pay raises if Opel extends a moratorium on plant closures through 2016. Today’s deadline passed without an agreement, Reuters says.

German metalworkers are entitled to the 4.3 percent pay raise, but Opel unions deferred payments through the end of October. Union representatives will meet today to discuss how to go forward.

Also today,  Germany’s anti-trust authority approved the alliance between GM and PSA, the Handelsblatt says. The agency decided that no market dominating tie-up exists. The agency did not investigate the bailout of PSA by the French government. That is Brussels’ job.

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7 Comments on “Opel: No Deal With The Unions, Deadline Expires...”

  • avatar

    They’re not going to get it. Something is going to close and soon. Ford is showing the way… again.

    • 0 avatar

      Exactly. Didn`t GM recently get a new deal with their employees at the Ellemere Port factory in the UK. And signal that Bochum was the likely first hit.

      It does cost a lot to close a factory but if the savings mean you pay it back within 2-3 years then it becomes a no-brainer. Ford had the guts to get it done, GM has strung it out (understandably in some respects since nothing can be done until 2015).

  • avatar

    Ford didn’t try to close a German factory. GM rewarded the loyalty of their English partner. GM’s issue is it’s over capacity in Germany.

    • 0 avatar

      It’s extremely difficult to close a German factory compared to a UK facility or a facility in Belgium because of the German workers commission or whatever it’s called. Ze Germans just get more work piled on top of them until they can’t handle it anymore. If you can’t get rid of them, you make them more efficient.

  • avatar

    Don’t know if labor law lets GM do it over there.. lengthy lockout followed by closure in 18 months. Just hire some expensive legal consultants GM – you know those former union labor lawyers who cross over as freelance union busters for big corps.

  • avatar

    The unions have met their match on this. Blood is not coming from this stone and they know it.

  • avatar

    Damned overcapacities. How do they work?

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