Unite Strikes Deal With Magna Over Vauxhall Plants' Future
13 Oktober 2009 - 4:35PM
Dow Jones News
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