Opel Strikes Deal with Unions at Bochum

Having been a reason for a lot of headaches for the management of German manufacturer Opel, the Bochum plant is now on track of re-becoming a major production hub for the car maker. Opel announced on Wednesday that an agreement over the restructuring plan has been reached with the local unions, paving the way towards making the facility “more efficient and to secure its future.”

The plant will soon begin producing the Zafira model, but it will do so with a significantly reduced workforce. The unions have agreed to Opel's plan of cutting 1,800 jobs at the site (600 of whom chose to leave in 2010), with more layoffs to follow later this year.

Of the remaining workforce (the plant employed 4,600 people when restructuring began), 300 people will continue to manufacture transmissions, as this production line, originally scheduled to close this year, will remain operational until 2013 due to the high demand.

In exchange for their agreement to leave, workers will be offered either support for the relocation at other sites, or yet unannounced incentives (Opel calls the incentives ""an increased mobility premium").

“With this agreement Opel reaches the end point of the company’s restructuring, which started early 2010 with the premise of making substantial investments in our products as well as adjusting capacity in our European plants,” said Karl-Friedrich Stracke, Opel/Vauxhall CEO.

“We are on the right track with our products, and our continuously increasing market share across Europe is a very encouraging sign. We will work even more intensively to further strengthen the company and the Opel brand.”