Opel Labour Boss: "Management's plans seem to change on a daily basis"
Published: February 1st, 2010
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Opel’s turnaround negotiations with German unions have gone pear-shaped again, as top labour rep Klaus Franz left talks denouncing GM’s decision to cut 9972 jobs instead of the promised 8300, according to The Wall Street Journal. “Fundamental questions have not been answered,” fretted Franz. “Management’s plans seem to change on a daily basis.” Rudi Kennes, a labour representative from Antwerp, concurred, saying the atmosphere between management and the unions “has never been as bad as now.” He added ominously that “(Mr Reilly) needs to answer our questions.”
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If GM losses Opel or GM Europe or whatever operation they have over there, they can start seeing themselves in Chrysler's mirror. However, history may be different this time. There's the China variable, which Chrysler at the time didn't have. To me, it seems both parties don't want to solve the matter.
Seems like they have a failure to communicate. GM=person with used car Union=used car mechanic GM decides to sell their busted car to the mechanic because it's too expensive to fix. The mechanic likes the idea, but then GM decides not to sell at the last minute. GM still wants the car fixed, at a heavily discounted mechanic rate, and the mechanic doesn't want to do that because GM must have had the money when they decided not to sell the car. GM must now pay the mechanics rate to get the car fixed or let the car sit. For whatever reason GM believes they have leverage to get the mechanic to lower their rates. The mechanic believes the car will sit and rot before they fix it for less than retail. The mechanics landlord, the German govt, has already indicated they don't want to reduce rent to help this customer who made a bad decision to keep a bum car. The landlord would rather give free rent to the mechanic if they can't get the customer to pay retail than subsidize an un-warranted discount to a lousy customer. Outside the analogy I wish we would have let GM fail and supported the out of work union folks with the money GM stole from the tax payers. As it is our investment is doomed and we'll still have the un-employed union folks to deal with in the end. Germany will only be doing one bailout and it will be to offset the union losses once GM folds.
"Franz added that another obstacle is whether GM would agree to reduce the 5% royalty Opel pays its parent company for every car sold" This was mentioned about six weeks ago. If GM hasn't stopped nicking Opel for the 5%, then the Magna deal was indeed different. Plus Magna wanted to expand Opel's markets, while GM wants them to labor away in the trenches in Europe. Sure, Magna's ideas might have been pie-in-the-sky to some extent, but the GM idea that Opel will have to forever merely compete in local markets is what has these labor leaders cheesed off. There is nothing to rally them for a brighter future.
Steven02 +1