GM workers reach initial deal

Workers in the German plants of Opel, the subsidiary of the car-maker General Motors, have reached initial agreement on planned job losses (see Labour Research November 2004, page 8). The agreement provides for 6,500 employees to be transferred for up to two years to special training and employment companies, where they will get 95% of their pay.

Another 3,000 will leave through early retirement and move to suppliers. Negotiations are continuing on the long-term future of the German plants and the company is expected to seek pay reductions in return for job guarantees.