Fauxhall: Workers Trade Pay Freeze For Job Security

Cammy Corrigan
by Cammy Corrigan

The Euro and the UK Pound go into a tailspin. Greece requires a bailout. Spain & Portugal could be next on the default list. The economy is in tatters. The car market is shrinking. The government announces spending cuts, on top of people’s reluctance to spend. On this dire backdrop, does it surprise you that workers at the Vauxhall plants (they’re actually Opel plants re-badged “Vauxhall”) have chosen to accept a pay freeze in return for job security? The Times of the UK reports that the 3200+ workers located in the UK are close to agreeing to a 2 year pay freeze. Union officials in the UK believe that the pay freeze is an acceptable hit to take in return for job security. They also believe that when it comes to the union vote, it will be passed through with little complaints. There is of course one slight flaw in the plan….

Opel’s Nick Reilly says that wage concessions to the tune of €265m a year are essential for Opel’s survival. Try as we might, the UK cannot bear the brunt of all of that, which means our European friends need to help out. The UK already has 500 Opel employees on the dole . Opel workers in Antwerp, Belgium made the ultimate sacrifice, albeit not completely voluntary. At an average severance pay of $205,000 per job, it was a bearable sacrifice.

That leaves Spain and Germany to help Opel out. Spain has already agreed to cut 900 jobs and since the Zaragoza plant in Spain is the largest GM plant in Europe and is efficiently run, GM will be at pains to make any more cuts there. Which leaves Germany. Germany has agreed to cut 4000 jobs, which means any more concessions will be unlikely. But despite all of this, Opel management say they’re close to a deal with European trade unions on concessions. Oh I forgot, there’s an even bigger problem. All of this restructuring will need to be financed by someone. Germany have said “nein”, the UK said “only if Germany is involved” (and that’s providing, the Centre-Right government won’t cut the funding completely.) RenCen will find it difficult trying to convince the US government to use US taxpayer money to bailout their European operations.

Suddenly, that job security doesn’t look worth the paper it’s printed on.

Cammy Corrigan
Cammy Corrigan

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  • PeriSoft PeriSoft on May 20, 2010
    We're Backing Luton ...as opposed to Brawn Grand Prix, who are lacking Button. I'll be here all week. Tip your waitress.
    • Robert.Walter Robert.Walter on May 20, 2010

      Better than "We're Looting Beckton!" I wonder if the new sign will be: "We're Backing-out of Luton"...

  • Joeaverage Joeaverage on Sep 15, 2010

    $205K severance??? Pay off your mortgage and get something else.

  • TCowner We've had a 64.5 Mustang in the family for the past 40 years. It is all original, Rangoon Red coupe with 289 (one of the first instead of the 260), Rally Pac, 4-speed, factory air, every option. Always gets smiles and thumbs ups.
  • ToolGuy This might be a good option for my spouse when it becomes available -- thought about reserving one but the $500 deposit is a little too serious. Oh sorry, that was the Volvo EX30, not the Mustang. Is Volvo part of Ford? Is the Mustang an EV? I'm so confused.
  • Mikey My late wife loved Mustangs ..We alway rented one while travelling . GM blood vetoed me purchasing one . 3 years after retirement bought an 08 rag top, followed by a 15 EB Hard top, In 18 i bought a low low mileage 05 GT rag with a stick.. The car had not been properly stored. That led to rodent issues !! Electrical nightmare. Lots of bucks !! The stick wasn't kind to my aging knees.. The 05 went to a long term dedicated Mustang guy. He loves it .. Today my garage tenant is a sweet 19 Camaro RS rag 6yl Auto. I just might take it out of hibernation this weekend. The Mustang will always hold a place in my heart.. Kudos to Ford for keeping it alive . I refuse to refer to the fake one by that storied name .
  • Ajla On the Mach-E, I still don't like it but my understanding is that it helps allow Ford to continue offering a V8 in the Mustang and F-150. Considering Dodge and Ram jumped off a cliff into 6-cylinder land there's probably some credibility to that story.
  • Ajla If I was Ford I would just troll Stellantis at all times.
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