Opel Reaches Severance Deal With Bochum Workers
General Motors subsidiary Opel has come to terms on a severance package for workers at its Bochum factory, set to close this year as part of the company’s restructuring plan.
Reuters reports Opel’s management reached a “binding and reliable” agreement with German labor union IG Metall. NASDAQ adds workers will receive €552 million ($748 million USD) in social benefits as a result of the agreement.
The closure of the plant — including an additional €60 million ($81 million USD) for related investments — will add to the burden of non-recurring costs for Opel, which also include currency challenges. GM expects Opel will become profitable by 2016 at the earliest, having accumulated $15 billion USD in losses beginning in 1999.
In a separate deal made in April, parts of Bochum will be purchased by Deutsche Post, bringing with it 600 jobs and a multi-million euro investment into the 20-acre facility.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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Social Benefits/ Union extortion?
Is Europe surprised no one is opening plants or factories there? Or do they prefer to let China, Inc. deal with pollution and other environmental issues?