Magna wants to cut a fifth of Vauxhall’s workforce
By Andrew C., 27 Aug, 2010. 0 Comments
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A fifth of Vauxhall's workforce will be cut if Magna wins the bid for Opel/Vauxhall, according to a leaked document revealed by the Times newspaper. These proposal documents were submitted to the German Government and the head of General Motors Europe on July 17. In the documents, Magna International said that it plans to cut 830 workers at the Vauxhall plant in Ellesmere Port, and another 354 at Luton.
However, it is not known whether the documents are final proposals, and they could have been modified following last-minute discussions. Unions expect that Magna and its main rival bidder, RHJ International, the Belgian industrials group, will sack about 10,000 workers across GM Europe as a whole. However, it has not been made public which workers would lose their jobs.
According to the documents, Magna also believes that it can return GM Europe to profitability by 2011 and that workers will share 10 percent of profits. Should the job cuts go ahead as outlined, the British workforce would suffer the same proportion of redundancies as the businesses across Europe. [via autocar]
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