By on October 12, 2012

German unions know that “end of October” means more for GM than October 31. German  unions now demand a final deal with Opel by October 26. If there is no deal, it will cost Opel: Opel can defer paying a 4.3 percent industry-wide wage rise until October 31, if there is no deal, Opel has to pay. Also on October 31, GM will publish its third-quarter earnings.

Opel and the unions have a deal that rules out plant closures and firings through the end of 2014. The unions want Opel to rule out compulsory redundancies through 2016 “and beyond,” Reuters says. This would save Opel immediate money, but it would also close the door on much needed capacity reductions.

The unions tell Reuters that Opel signaled its willingness to sign a labor deal that would go past the current horizon of its mid-term business plan approved late in June, which lasts through 2016. GM was hoping it could announce better news in its earnings report.

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9 Comments on “Unions Want Opel Deal Before The End Of October...”

  • avatar
    el scotto

    GM has to give the raise and will probably do as little as possible with the union. If GM merges with PSA as mentioned in another article and has to deal with German and French unions well, I’d druther have a painful rectal itch.

  • avatar

    God, is there anything sadder than 50-something blue collar white guys trying to keep their jobs?

    Good people, poorly educated but hard working and devoted to family. Dinosaurs, in other words.

    • 0 avatar
      el scotto

      To add an ironic twist to their situation they may be so close to retirement. I knew guys who started with GM in their mid-20’s and retired in their mid-50’s after 30 years.

      • 0 avatar

        Yes, so close to the reward they’ve dreamt of for decades, so incapable of hitting the ground running for another career. It’s like being a loyal crew member of the Titanic after all the lifeboats are gone.

        I’m from steelworker roots but managed to squeeze into a lifeboat via a 2nd go at college (almost have my loan paid off). But nobody except a 1%-er is truly out of the woods.

      • 0 avatar

        Certain parts of IT pay very well and will continue too for the foreseeable future. Around the time I first went to college (1999) industry tried to offshore IT jobs, it worked out so poorly in terms of product received back many I have talked too said never again.

  • avatar

    Looks to me that GM is trying to figure out what to do with the projected production that they had predicted and had asked from the Union to perform to 2014. Shaking my Mystic 8 ball, all signs seem to point to GM finding a new market for the glut of cars they had thought they could sell. North America seems very promising with the economy slowing moving towards coming out of its morass and with the apparent success of the its small car lineup, GM is poised to provide Opel’s to a more energized market. Can’t just slap a Chevy or Buick badge on all of them and can’t waste the money creating a new ‘Opel’ brand. The more accessible solution seems to me to resurrect Saturn from the ashes, do a very simple rebadge of European Opels, and sell in North America.

    Obviously spit-balling here, but I don’t see GM eating the inventory or letting the European malaise sink further into its recovery. Admittedly, I’m looking at this as Best-Case Scenario.

    • 0 avatar

      “Opel” would probably have more market cachet in North America than “Saturn”, at least they could b/s about German Engineering and not have people wondering if they were still made out of plastic.

    • 0 avatar

      Buick and Opel are very close already on product. I don’t see Saturn coming back. Plus, you then have to look at exchange rates, which I don’t think favor importing cars from the EU.

      Honestly, plant closings are very likely to happen. I don’t see anything else going on. GM needs to sell more Opels in Europe, maybe they can export more to China or some other markets. I don’t see Opel coming to the US.

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