Uneasy union
November 10, 2009
GM has decided that it wants to keep its European subsidiary Opel, but it probably won't keep all 50,000-plus workers, and some factories may also be in danger.
General Motors announced last week that Opel would have to shed roughly 10,000 jobs to remain profitable, and now CEO Henderson has to try to sell this plan to the staff council at Opel's German base of Ruesselsheim.
"Today, he shall hold talks with management and with the staff council", said an Opel spokeswoman.
Henderson's meeting with staff council head Klaus Franz may not be amicable. In his previous role as Opel CEO, Henderson became renowned among workers for his tough job-cutting measures. Now, history is poised to repeat itself.
This is the second and final day of Henderson's trip to Ruesselsheim. On Monday he met with Opel leaders to discuss the company's future. An Opel spokesman said the CEO is holding internal talks at the Opel headquarters, in a bid to gain some insight into the current situation there.
Out with the new
Due to the improving economic climate, General Motors recently decided to cancel the proposed sale of Opel to Canadian car-parts maker Magna. This has angered the German government and local Opel unions, because Magna had promised to protect all five Opel factories based in Germany. Other Opel employees throughout Europe, however, have welcomed General Motors' decision.
According to the German business daily Handelsblatt, the Opel works council has written to the European Union Competition Commissioner, Neelie Kroes, asking her to stop any job-cutting measures that are too hard on Germany.
However, it was Kroes who deemed the pro-German Magna stance as anticompetitive, opening the door for General Motors to cancel the sale of a majority stake in Opel.
Opel's German staff council estimates that roughly 8,000 German employees will lose their jobs at Opel under GM's rule, with a further 2,500 places in Belgium at risk. Opel factories in Antwerp, Belgium, and Bochum and Eisenach, in Germany, are considered the most at risk of closure during the restructuring of Opel.
A freer hand?
The works council is also lobbying for GM to give Opel greater independence in its daily running, a wish the US parent company is likely to grant.
The top short-term priority, however, is seeking out Opel's next CEO to steer the company through its restructuring process. GM Europe boss Carl-Peter Forster, a keen backer of the Magna takeover bid, stepped down after GM's decision to keep the company. He is now being linked with the budget Indian carmaker Tata.
Meanwhile, Henderson was to give a press conference later Tuesday, elaborating on GM's future plans for its European subsidiary.
This could be a critical moment for GM, which still hopes for state support to help fund the Opel restructuring. The German government had already pledged to help Magna in its efforts, but after GM thwarted German Chancellor Angela Merkel's proposed solution, Berlin might be unwilling to step in and help this time.
msh/dpa/AFP/AP
Editor: Jennifer Abramsohn