Movement in restructuring negotiations: PSA boss Tavares wants to present future plan for Opel

05/03/2018

Movement in restructuring negotiations PSA boss Tavares wants to submit a future plan for Opel

DPA

Opel boss Michael Lohscheller (r) and PSA CEO Carlos Tavares: “Opel and its employees must be respected”

In the tug of war with the works council for the future of Opel, the powerful PSA boss Carlos Tavares shows willingness to negotiate. Does that lead to a reduction of tension?

In the stalled restructuring negotiations for the German Opel works signaled PSA boss Carlos Tavares movement. The ready-made future plans for the three German locations Eisenach, Rüsselsheim and Kaiserslautern should be discussed with the works council, said Tavares on Thursday German media in Rueil-Malmaison near Paris. “We are ready for it.”

On demand, he confirmed that there was no precondition for it. Among other things, the plans deal with planned car models, capacities, investments and the required “performance” of the plants. He was also prepared to submit IG Metall cost structures of comparable PSA plants, announced Tavares.

Between management and trade unions, there has been a lively dispute over the future of the refurbishment case Opel in Germany. Affected are 18,000 employees. IG Metall had accused the company of extortion. Workers had criticized in the negotiations that there was no future plan with firm commitments on employment quotas and product placement in the individual plants.

There are many worries, especially in the Eisenach district of Thuringia, because according to IG Metall data, so far only the production of a large off-road vehicle with an annual number of less than 100,000 is under discussion. The French PSA group, which also includes the brands Peugeot, Citroën and DS, Opel had taken over last summer.

Opel boss Lohscheller will be considered “hero” according to Tavares

Tavares raised concerns and lamented a “negative buzz” about Opel. “Opel and its employees must be respected,” he demanded. He had been at Opel on Wednesday. “I’m ready to bargain and find a solution.”

He added, “The refurbishment of this company will take place.” Opel boss Michael Lohscheller will be considered in not too long time in Germany “as a hero”.

Opel

Soon a hero? Opel boss Michael Lohscheller

The PSA boss as allegations back, according to which existing collective agreements would be violated at Opel for production. A French and a German law firm had attested that the agreements would be respected. PSA comply with legal requirements.

Tavares made it clear that he continues to volunteer when employees leave. On the other hand, no one should be prevented from leaving the company. “You can not stop anyone from going if he wants to leave.”

The works council had not approved about 70 termination agreements as of May 1; the employee representatives had criticized the redundancy scheme for younger employees. Tavares did not name any numbers for staff reduction. Car expert Ferdinand Dudenhöffer calculated that around 6000 jobs would have to be eliminated at Opel in order to achieve the efficiency of PSA factories.

A short interlude on the main issues and backgrounds of the dispute.

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