FRANCE: GM obtains reluctant signature from union

By: Simon Warburton | 29 July 2010

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General Motors' plan to acquire the automatic transmission plant in Strasbourg has taken a step closer to fruition.

The plant is currently owned by Motors Liquidation Company, with GM reportedly looking to buy it for a symbolic EUR1 (US$1.30), but the purchase has been repeatedly thwarted by the Confederation General du Travail (CGT) union's refusal to sign a productivity agreement.

Three other unions at the Strasbourg site have already signed the deal, but in a compromise move, the CGT has inked a separate accord agreeing not to oppose the new practices that will involve a 10% reduction in costs.

"The CGT will not oppose the agreement signed by the three unions and the three conditions required by GM have been reached," a GM Strasbourg spokesman told just-auto.

"The CGT has accepted to sign another special agreement not to oppose the measures to have the economies."

GM in Detroit is now mulling the development from Strasbourg with its takeover conditions now having apparently been met.

Specifically, these are a 10% reduction in costs which will include six extra working days per year, a salary freeze for two years and an acceptance by the Works Council of the deal. No salary reduction will occur however.

Nonetheless, the CGT is remaining defiant despite having agreed to the deal, which could now see GM acquire the plant.

A statement sent to just-auto from the union noted: "We support more than ever our comrades in General Motors, who have suffered pressure, attacks and discredit for several weeks.

"It's in this context that an agreement has been initialled. Social dialogue does not exist when it is subjected to blackmail."

The Strasbourg plant will now close for two weeks and reopen on 15 August.

Sectors: Components, Vehicle manufacturers, Vehicle manufacturing

Companies: GM

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'New GM' pays EUR1 for 'old GM's' transmission plant

General Motors has confirmed it paid a symbolic EUR1 (US$1.32) for the automatic transmission plant in Strasbourg. The automaker signed a deal to take over the gearbox factory with Motors Liquidation Company (MLC) but now has to go through a closing process that could take a further two months to finalise.

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