Unite, the U.K. Trade Union, said Tuesday an agreement on the future of the U.K. Vauxhall plants has been reached between Unite, and Magna International Inc (MGA), the Canadian auto parts company and preferred bidder for General Motors' European operations.

MAIN FACTS:

-Agreement gives both plants job security and a future through to 2013, providing a good basis for a long-term future beyond that.

-Ellesmere Port, subject to maintaining its competitive position, will produce the next generation Astra (set for 2016)

-Luton van plant will be maintained as a key site within Magna's U.K. portfolio, and confirms that Magna will seek "any other possibility on product" for the plant

-There will be no compulsory redundancies at either U.K. plant

-Two shifts at Ellesmere Port with volume agreed at 147,500 by 2011 irrespective of demand fluctuations

-Workforce will contribute through cost-saving and efficiency measures, including a two year pay freeze (although weekly working hours will rise helping to bridge the earnings gap) and increased contributions to the car purchase scheme of GBP20 per month.

-Talks between Magna and the works councils of the other European nations continue.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com