Opel staff have been told this morning they will face pay cuts as the automaker slashes production and supply manufacturing at its Russelsheim and Kaiserslautern plants by 20 days until the end of the year.
Although the level of wage reduction is not yet clear, the German manufacturer’s decision to implement kurzarbeit or short-time working, will lead to around 9,000 staff at both plants taking a pay hit, although this will be cushioned by grants from the government and Opel itself.
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“There will be [pay] losses, but it will not be such a big percentage as it would be without the support of the company,” a General Motors Europe spokesman told just-auto from Germany.
“There has been discussion with the unions and it is a joint decision – it has been decided in conjunction with the unions. We told the employees today – there are of course many more meetings to give information.”
Kaiserslautern is also affected as it produces engines and body parts for the Astra manufactured at Russelsheim. No specific dates are yet known in September when areas such as stamping and welding will be cut, but plants will implement individual solutions says Opel.
“The basic understanding of kurzarbeit is part of a law that says if a plant is not running on full capacity and it is clear it is for bridging a certain kind of market weakness, then [the] government will jump in and help out,” said the GM spokesman.
Opel’s main union, IG Metall, yesterday (22 August) declined to comment on possible short-time working, but the head of the automaker’s Works Council, Wolfgang Schäfer-Klug insisted the move would safeguard jobs.
“Thanks to the support of short work payment and an additional allowance from the company, the financial burden for the employees will be limited,” said Schäfer-Klug.
“The Works Council and IG Metall have worked to ensure this socially responsible measure can be applied to the Rüsselsheim work force and production area, as well as administration.”
Short work applies to manufacturing as well as to the central and administrative functions. In manufacturing, labour time will be reduced by short work shifts or short work days starting in September.
In the administrative and service functions, short work days will be applied starting in October. Engineering is not affected by short work.
