General Motors Portugal (GMP) and employee representatives have agreed a separation package to compensate employees for the termination of their work contracts due to the end of production at the Azambuja plant by the end of the year.
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GMP claims its offer is the best and most generous ever made by any industrial company in Portugal.
The financial conditions and details of the transition package were accepted by the employees. According to the agreement, GMP will pay, at least, to every employee who has a permanent working contract, the equivalent of two monthly base salaries for each year of seniority. Those employees whose base salary does not reach EUR1,500 will receive one monthly base salary plus €1,500 extra for each year with GM Portugal.
In addition, GMP will provide each employee two years of benefits such as health insurance, school subsidy, subsidy for employees with disabled children and the individual accruals existing in the GMP supplementary pension plan.
Employees will also be offered discounts on Opel cars and parts.
The compensation package is linked to the fulfillment of a production plan for the production of 23,062 Combo units by 21 December, 2006, and the relocation of the Opel Combo production to Zaragoza in Spain.
Eric Stevens, GM Europe vice president for manufacturing, said: “This is the best transition package ever presented in Portugal and it confirms GM’s commitment to minimise the impact of the Azambuja plant shutdown on its workforce. We appreciate the cooperation of our labour representatives to achieve such a constructive solution.”
