General Motors Co's Opel, Labor Unions In Talks To Shut Bochum Plant-Reuters

Reuters reported that General Motors' European unit Opel is negotiating a deal with labor unions to close the Bochum plant after production of the Zafira Tourer van ends in exchange for guaranteeing German jobs through 2016. Opel's management, the IG Metall trade union and the works council representatives of the German plants will continue talks in the coming weeks to reach an agreement over job cuts, a freeze in wage hikes, building a wider range of models and a deeper expansion into export markets. Under the compromise outlined, General Motors Co and Opel would be able to reduce General Motors' fixed cost base by letting Bochum wind down its production when the Zafira Tourer's life cycle ends, generally expected for the end of 2016. While this would cost the jobs of 3,300 people employed at Bochum, management had relinquished considerations of ceasing production in 2015 when a current labor deal expires that protects the 20,000-odd German workers at Opel's three car plants and one component plant. In agreeing to step outside the industry deal, labor hopes the talks would allow job guarantees to be extended another two years through the end of 2016.