Monday, August 22, 2005

GM: Outsourcing plans for Opel unit in line with March labor agreement

Associated Press

Comment on this story Send this story to a friend Get Home Delivery

FRANKFURT, Germany -- General Motors Corp.'s European division said Monday its plans to outsource some jobs at its Opel unit were in line with a labor agreement it reached in March.

The company defended its plans after Klaus Franz, a labor representative for workers at GM's Opel brand, told the Welt am Sonntag newspaper this weekend that the company was looking to transfer 350 Opel workers from their jobs at plants in the German cities of Bochum, Kaiserslautern and Ruesselsheim to an external company.

Doing so, he said, would violate GM Europe's agreement to guarantee the jobs remain unmoved and unchanged through 2010.

Ruediger Assion, a spokesman for GM Europe, said the outsourcing plans had been discussed before and were already part of the March agreement.

"GM Europe doesn't plan anything in secret, but follows plans in close cooperation with Opel's management board," he said Monday.

He said outsourcing plans for 100 other workers at its Bochum plant have been put on hold through the end of November while the company holds negotiations with labor groups about an eventual move.

In March, GM reached a long-term deal with its labor groups, giving them a no-layoff pledge in return for offering smaller wage increases and more flexible working hours.

GM already has said 4,500 workers have accepted buyouts and will leave, part of a total of 9,000 lost jobs at Opel. Some 2,700 jobs are being cut at the main plant in Ruesselsheim, 1,500 at the factory in Bochum and 300 at Kaiserslautern, the company said.

In addition to those accepting the severance package, 1,000 Opel employees have agreed to an early retirement plan.

On the Net:
Opel: http://www.opel.de