German union officials negotiating redundancy terms for Opel staff at its Bochum plant, are hoping to ink a deal by April that could see a US$700m compensation package agreed.
Opel is due to shutter its plant in North-Rhine Westphalia at the end of this year with the loss of around 3,300 jobs, with the IG Metall union discussing a range of complex compensation and retraining packages with the German automaker.
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Any deal could see around EUR100,000 (US$137,000) offered as an average per employee depending on service length, coupled with retraining, but the union also notes Opel will create around 370 new jobs through the establishment of a distribution centre in Bochum.
“Opel says it will stay in Bochum for the next years with a small factory for distribution,” an IG Metall spokesman told just-auto from Bielefeld in Germany. “As a result we have 270 new jobs and we will also get 100 industrial jobs.
“It is only 10% of what we need, but it is one point of this whole package.
“It is difficult in this area of North-Rhine Westphalia because we have not so many jobs. This is really a problem for a lot of these people, so the money they get will not help enough.”
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By GlobalDataOpel previously indicated it would provide a two-year transfer operation to aid staff to find other employment following the Bochum shuttering, which will be the first time an automotive plant will have closed in Germany since World War II.
“It is good we have [for] the first time of closing a factory, Opel must give investment in new jobs in this town,” said the IG Metall spokesman. “That is a good result because in other situations [such as] Antwerp and the US, they only leave these area [s] without any new jobs.”
Opel HR director, Ulrich Schumacher, formerly noted the manufacturer would provide “responsible and socially-acceptable solutions for our Bochum employees,” adding it had reached agreement for a social collective labour contract.
IG Metall says staff will receive 80% of their final salary in the first year of redundancy, followed by a second year at 75%.
“Particular emphasis will be on the placement and qualification of employees in other fields of activity in the greater region of Bochum,” said a previous Opel statement.
“This will be pursued in particular by the ‘Bochum 2022 perspective.’ Cooperation with other reputable companies should lead to attractive employment opportunities.”
Redundancy payments are taxed at around 20% according to the union.
Opel was not immediately available for comment in Germany.
