Opel Labor Talks Suspended

Talks between General Motors, Canadian - Austrian partsmaker Magna and Opel workers came to no conclusion this week and they should resume anytime soon, officials involved in the matter revealed. Although the two involved parties hoped to reach an agreement this week and General motors to sign the selling contract next week, union leaders revealed that they still don't know which are the plants to produce which models and nobody knows for sure the name of the factories to be closed.

"There will be no result of negotiations today, but talks will continue soon," Opel labour leader Klaus Franz told Reuters on Thursday according to a report by Reuters.

"Talks will continue next week, but it is currently not clear when we will reach a conclusion," Rainer Einenkel, head of the works council at Opel's factory in western German Bochum, added.

General Motors agreed in September to sell a 55 percent stake in Opel to Magna and Sberbank and retain 35 percent of the German brand. 10 percent will go to Opel's employees who agreed to cut costs by 265 million euros per year.

During negotiations, Opel's workers demanded Magna to keep all plants open for two more years and then apply the required cost-cutting measures, but only if needed at that time. Opel's employees expect the company to recover in the next two years so cutting workforce won't be needed in the aforementioned timeframe.

"To give New Opel a chance to succeed, all employees at all locations need to be involved," Armin Schild, an IG Metall union official who is on the division's supervisory board, said. "It won't be easy, but we have a chance to achieve savings targets for a two- year transitional period without forced layoffs and plant closings."