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Opel Unions Want Veto Right

The uncertainty in which Opel has been thrown since GM decided Magna is no longer good enough for its European asset is making German unions ask for more influence when it comes to the choice of Opel's next owner. Even more, Opel union no longer want to have anything to do with GM, as they ask the Americans to give up any possibility of re-buying their stake in due time, Autonews reported.

The weapon of choice for the workers? If they don't have more say in the bidder choosing, the unions are ready to boycott GM's and Opel's attempts to cut costs.

"An investment by the employees is linked to clear prerequisites and demands," labor leaders said in a statement signed by all four works council chairmen in Germany, two regional IG Metall trade union leaders and three other labor representatives.

"The labor representatives and IG Metall would therefore not make any contributions to the company without a participation in the decision process - regardless of whichever investor GM might choose."

As most of Germany, the unions like Magna and would like nothing better than to see it at the helm. The workers see counter-bidder RHJ as a threat and are now asking for veto rights in naming the new Opel owner.

Among the things the workers hate about RHJ's offer is, as said, the loophole through which GM may come back in charge of the manufacturer. The workers asked GM to "retain from hopes hat it could build a buyback or right of first offer clause into a sale agreement."

Why are the unions so determined? Well, they say none of the bidders is either willing or able to bring in as much money as the unions. If they cooperate into reducing costs, the unions say will save Opel 1.5 billion euros in structural costs until 2014.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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