GM says 10,000 jobs will go across Europe
HOPES are high that General Motors will not force compulsory redundancies on Vauxhall, after its shock U-turn to keep its European business.
GM yesterday confirmed that it was looking to cut 10,000 posts across Europe as part of a restructuring plan.
Vauxhall employs around 5,000 people at Ellesmere Port in Cheshire and in Luton. The Ellesmere Port plant is one of the most productive in Europe and is the home of the top-selling Astra.
Union leaders responded to the latest development by saying redundancies were inevitable, but believe the cost-cutting will be no worse than if Canadian car parts group Magna had bought the business – as had been planned.
According to reports today Lord Mandelson, the Business Secretary, has already spoken to GM bosses and financial support to secure Vauxhall’s long term future.
John Smith, GM’s group vice president, said yesterday: “Our plans envisaged a headcount reduction of roughly 10,000 people.”
Tony Woodley, head of the Unite union said in response: “I have no doubt that whoever the owner would be, there will be major restructuring of GM operations.
“Inevitably some will go in the UK, but our task is to minimise the number of jobs lost and ensure that those who do go, go voluntarily.”
While the reaction in this country has been reasonably positive to GM’s unexpected move, there has been fury in Germany, which looked to be the big winner if the Magna sale had gone ahead. Staff at Opel plants will take industrial action today.
