GM and Unions Reach Agreement to Close Belgium Plant

GM’s Opel/Vauxhall unit has agreed a deal with unions to shut down the company’s plant from Antwerp, Belgium, according to the Automotive News. GM had announced since January that it would close the factory as part of a restructuring plan meant to reduce European capacity by a fifth and help Opel become profitable within two years.

Opel unions, which had initially opposed the closure, agreed on Sunday on a compensation package for the 2,560 workers, a plant spokeswoman told the German press agency DPA. Workers will vote on Tuesday whether to accept the deal, which offers them up to EUR144,000 (USD193,000) in compensation for losing their jobs.

However, GM will still look for an outside investor to take control of the plant and continue building the Astra three-door hatch and convertible. If no such investor is found until September 30, the factory will be shut down by the end of the year.

Opel’s top union leader, Klaus Franz, told DPA that an important obstacle in the path of the labor’s acceptance of GM’s European restructuring will be removed if Antwerp workers vote in favour of the deal.

GM plans to cut 8,300 of Opel/Vauxhall’s 48,000 workforce and is looking for up to EUR2 billion in loan guarantees from five European governments necessary for its turnaround plan for Opel and Vauxhall. The British government has already pledged EUR300 million. Germany, where most of the workers are based, is being asked for EUR1,3 billion. A decision by the local government on this issue is still to be made.