Spain Struggles to Keep Opel Plant Untouched

Magna has already announced that it will cut around 1,350 jobs in Spain but the local government is willing to continue negotiations with the new Opel owner to ensure the stable and long term future of the plant in Figuerelas, near Zaragoza. Spanish industry, tourism and commerce minister Miguel Sebastian said he will meet with Magna officials this week to discuss on the job cuts and ensure that the decisions are purely industrial and not based on political interests.

Spain hasn't mentioned how much money it plans to offer Magna to support Opel's restructuring but Sebastian said the government is indeed willing to help the new owner in case it is necessary.

According to original job cutting plans, Magna was aiming to cut around 1,650 Opel jobs in Spain but, after further negotiations, the two sides agreed to remove only 1,300 employees, out of the 7,500 currently working in Zaragoza.

"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 month, workers at the Zaragoza plant decided to demonstrate against the proposed job cuts issues by Magna. The employees marched alongside local politicians and union representatives, carrying banners and messages aimed at the Canadian - Austrian partsmaker.

"We all see the need for restructuring and capacity adjustments, but every job has a face that goes along with it and we want to do this in a socially acceptable way -- no plant closures and no forced layoffs," Opel union boss Klaus Franz said in September after protests against Magna's cost cutting plans took place across Europe. "Opel's labor appeals to each European country not to encumber the talks with nationalistic interests."