CEO Tavares insists on tough austerity measures

At Opel, the fronts between the workforce and the French mother Peugeot harden. Despite protests and good numbers, CEO Tavares urges a wage waiver.


Opelaner protestieren in Eisenach, Thüringen

Opelians protest in Eisenach, Thuringia

Tuesday, 24.04.2018
5:32 pm

Because of the planned renovation of the OpelWorks in Germany, the workforce goes with the parent company Peugeot SA (PSA) on confrontation course. While Opel workers in Thuringia are protesting against planned cuts, PSA boss Carlos Tavares continues to insist on tough savings at the shareholder meeting in France.

PSA already sat in France and also Great Britain Austerity measures and now wants to bring the German plants on course. So Tavares pounded together with Opel boss Michael Lohscheller on one Wage waiver of employeesin order to lower labor costs in this country to the lower level of the overall Group.

Opel workers demonstrate in Eisenach

The refurbishment talks for the German Opel works have so far remained without result. IG Metall accuses PSA of extortion and demands a detailed business plan. The union fears that the parent company could endanger the company with a clear cut in Germany.

PSA, which also includes the brands Peugeot, Citroën and DS, Opel had taken over last summer. However, PSA has agreed not to close any plants in Germany and to declare redundancies.

Nevertheless, according to the unions, especially the smallest factory in Eisenach is in the balance. Workers, trade unionists and Thuringian state politicians gathered there on Tuesday to protest in front of the factory gate against the end of the Eisenach Opel production.

According to the IG Metall, so far only the production of a large SUV with an annual number of less than 100,000 vehicles for Eisenach in conversation. This would have just under 1,000 of the currently 1,800 employees a perspective, said a union spokesman. Only with two car models, the location could therefore operate profitably.

Thuringia’s Prime Minister Bodo Ramelow (left) called on the event company and employee representatives to return to the negotiating table. “The differences have to be eliminated there,” he said. Ramelow called for PSA to comply with commitments and collective bargaining agreements. Previously, Chancellor Angela Merkel already had appealed to the French group,

Tavares: “Bringing the company back on track”

He does not see a quick conclusion to the negotiations, said PSA boss Tavares at the shareholder meeting of the car company, which also took place this Tuesday. “It will take a few more weeks,” said the manager. “Do not be surprised, this will make some noise, that’s part of what you have to do to get that company back on track.” He pointed out that there are already agreements with the social partners in the UK, Poland, Spain, Hungary and Austria.

Since the takeover by PSA, fixed costs at Opel have already fallen by 17 percent, according to Tavares. Consolidated sales in the first quarter, including Opel, rose sharply by a good 42 percent to around 18.2 billion euros. The Opel division – which also includes the British sister brand Vauxhall – accounted for a revenue share of 4.84 billion euros.

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