PSA Group suspends controversial severance pay for the time being

Opel is after the takeover by France’s PSA Group at a crossroads: The management wants to drastically reduce the workforce, the union suspects a clear-cut, which threatens the substance.


Mitarbeiter vor Opelwerk in Rüsselsheim

Employees in front of Opelwerk in Rüsselsheim

Wednesday, 09.05.2018
19:03 clock

After a long dispute, the Car manufacturer Opel be Controversial severance program for the time being suspended for younger employees. This is apparent from internal information that management and IG Metall have given to the workforce. As the works council in turn wants to agree to all cancellation agreements due in May, according to the HR department, around 400 Opel workers can join the company severance leave.

There is a great deal of disagreement between Opel management and workers about the need for severance packages. Works Council and IG Metall accuse the management, with a clear cut in Germany to endanger the car manufacturer.

The staff reduction needed for the restructuring can be achieved only with early retirement and partial retirement, argue works council and IG Metall. They assume that in this way at least 3700 of the remaining 18,000 Opel employees in Germany could leave the company. In addition, when people left, staff shortages and increased use of temporary workers threatened.

Dispute avoided in court

The company, which was taken over by the French PSA group, has now committed itself until 28/29. May no longer conclude or approve new termination agreements. Also, it may not obtain signatures from employees or offer social plan severance pay for self-termination. However, it is allowed to have consultations with interested parties.

The compromise had been reached on Tuesday after hours of negotiations in the settlement office, which accompanied the refurbishment process at Opel. The compromise avoided legal disputes, according to the circular. The next steps will be discussed at the next meeting from May 28th.

But Opel has launched an additional redundancy program, which is also aimed at younger employees and for which there are already around 1000 applicants according to the company. Depending on length of service, the base amount can reach in individual cases up to 275,000 euros. The works council, which required approval, had blocked first termination agreements, which for example had been concluded by 70 employees from the Eisenach assembly plant. You can now leave the company together with other employees.

Go to source