Union welcomes GM decision to keep Opel
Unite welcomes decision by General Motors to cancel plans to sell Opel
Wednesday, 04, Nov 2009 09:49
By Richard James.
The union Unite has welcomed the decision by General Motors (GM) to cancel plans to sell a majority stake in its European business Opel.
The US car giant announced on Tuesday it had decided to keep hold of its European arm, which includes the UK brand Vauxhall, due to the "improving business environment".
GM had previously agreed to sell Opel and Vauxhall to the Canadian car parts company Magna.
The surprise U-turn will anger many in Europe due to the months of negotiations and the ?4.5 billion (£4 billion) in loans pledged by the German government to Magna.
However, the decision was initially welcomed by the union representing the UK Vauxhall workers, with Unite secretary general Tony Woodley describing it as a "fantastic decision".
The deal had threatened thousand of jobs around Europe and its collapse was roundly supported at the factories in Ellesmere Port and Luton, which employ around 5,500 workers.
Speaking to Sky News, Mr Woodley said: "We are absolutely delighted that General Motors has taken the right decision for General Motors and I believe they have taken the right decision for Britain and the workers."
In other TV interviews he said the decision not to sell was the right thing to do and better than breaking up the company, despite the previous deal struck with Magna.
The news may not be the complete end of uncertainty for workers though with reports GM still plans on restructuring its European arm.
Business secretary Lord Mandelson has called for early discussions with GM to discover how their plans might affect British workers.