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Magna Submits New Offer to Spanish Unions

Magna has already reached an agreement with British unions but the company failed to come to a conclusion with Spanish leaders. Well, the Canadian - Austrian partsmaker today submitted a new proposal to Spanish and will discuss the changes with government representatives today.

However, it appears the involved parties will discuss the issues in a conference call as Spanish industry minister Miguel Sebastian and Magna's co-CEO Siegfried Wolf are unable to attend the meeting.

There are no details on the aspects that were subject to modifications, but union leaders previously rejected Magna's proposal because of the industrial plan for the automaker.

After a first round of talks, Magna last week agreed to cut fewer jobs in Spain, lowering the number from 1,650 workers to 1,300. The Zaragoza plant currently employs 7,500 people.

"Magna have tabled a new plan for the plant today, which involves making 100 percent of the five-door Opel Corsa,"
Ana Sanchez, an official with the Comisiones Obreras union at the plant said last week.

Spain is one of the countries that manifested the most significant opposition to Magna's cost-cutting plans, with employees at the local plant marching, alongside businessmen and politicians, on the streets of the city.

"We will fight tooth and nail to defend every job at the plant,"
the president of the Aragon region said during the protests.

It was initially believed that Magna would remove 1,700 jobs in Spain, with another 800 to be indirectly affected as they are working in auxiliary industries closely related to Opel's activities.

Magna International will take control of a 55 percent stake in Opel, while General Motors will continue to own 35 percent. The deal is expected to be closed tomorrow, as soon as Magna signs an agreement with the involved labor unions.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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