UK Labor, Magna Reach Opel Deal

Magna International yesterday reached an agreement with Vauxhall workers after weeks of negotiations, as sources involved in the talks revealed. Tony Woodley, joint general secretary of Unite, the UK-based union, told Reuters that both Vauxhall plants initially at risk would become key manufacturing sites but hasn't provided too many details on the matter.

He mentioned, however, that 600 jobs, initially projected to be removed, will be saved and Magna agreed no to set in place new enforced job cuts.

Britain's Business Secretary, Peter Mandelson, said the new deal is much better compared to the initial proposal submitted by the Canadian - Austrian parts manufacturer.

"I need to be convinced that the terms and conditions for the financing will be of the sort and standard that the government expects when we put taxpayers' money into a company like this," he told BBC TV.

On the other hand, Magna faces strong opposition in Spain where Magna representatives and local unions were unable to reach an agreement on Tuesday.

"The meeting has finished without any kind of agreement," said Juan Arceiz, head of the workers committee at Opel Spain.

Another important issue to be resolved before Magna gets the final signature on the Opel deal is the Antwerp case as General Motors admitted last month the local plant is indeed at risk and might be closed as part of the restructuring process.

"That plant has been under evaluation for some time; no final decision has been taken. But it's certainly at risk," GM CEO Fritz Henderson said at the Frankfurt Auto Show last month. "We want this deal to close. We want Opel to succeed - period. There is no call option. There is no put option. So they can't force us to buy and we can't force them to sell. But if they want to sell, we have the right to make an offer," he said.