Magna to make fewer jobs cuts at Opel plant in Spain: union | business | Hindustan Times
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Magna to make fewer jobs cuts at Opel plant in Spain: union

business Updated: Oct 06, 2009 11:16 IST

AFP
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The new owners of car maker Opel, Canadian auto parts group Magna International, will slash 1,350 jobs at its plant in Zaragoza in eastern Spain, 350 fewer than initially planned, a union official said.

Magna officials made the announcement to the plant's union works council, the council's president, Jose Juan Arceiz, told the Europa Press news agency.

Neither the General Workers Union (UGT), which Arceiz does not belong too, nor General Motors, which currently owns Opel, were immediately available to confirm the lower number of job cuts.

Last month struggling US giant General Motors announced the sale of a majority stake in its European arm Opel to Magna and its partner, Russian state-owned lender Sberbank.

According to details leaked to German media, Magna is poised to slash around 11,000 jobs from around 45,000 in Europe, including roughly 4,000 from some 25,000 in Germany.

Last week Spanish Industry Minister Miguel Sebastian wrote to European commissioners to ask that they make sure that any reorganisation of Opel's operations by Magna makes "best possible use of the company's assets," the Financial Times reported.

Belgium, Spain, Britain and Poland have all raised concerns that the Opel sale to Magna would see them at a disadvantage compared to Germany, which has backed the deal with 4.5 billion euros (6.6 billion dollars) in state aid, when it comes time to distribute job cuts.