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The announcement of PSA Peugeot-Citroën’s possible acquisition of Opel has raised a wave of concerns among workers in Germany – which make up 19,000 of General Motors’ 38,000 European employees – and in the UK. On Monday PSA’s chief executive Carlos Tavares met in Germany with Jörg Hofman, the president of metalworkers’ union IG Metall, and Wolfgang Schäfer-Klug, who presides over Opel’s EWC. Mr Tavares’ aim was to bring assurances that any deal would respect agreements to guarantee existing jobs. Under existing binding agreements at Opel, there can be no economic lay-offs at the company’s German factories until the end of 2018, while there is also a commitment to invest in these sites until 2020 at the earliest. PSA’s management explained that it plans to “work closely” alongside bodies representing Opel employees as well as IG Metall, as both PSA and Opel look to build a path towards creating “a European champion with Franco-German roots, in order to protect the company and its staff”. Mr Tavares also spoke on the phone with Chancellor Angela Merkel.
Meanwhile in the UK, worries remain among Vauxhall’s 4,500 employees, which work at the manufacturer’s two sites. With Brexit on the horizon, the likelihood of trade tariffs returning, and now the guarantee that jobs in Germany will be maintained, the atmosphere at British factories is uncertain. Added to that, the PSA is already seen as a stubborn cost cutter, after the painful closure of the Ryton factory back in 2007. Mr Tavares is due to meet with Len McCluskey, leader of the Unite union, on Friday. He will also meet with UK prime minister Theresa May and her business minister. Their aim is to obtain the same guarantees that are in place for German workers. There is also a political backdrop to the situation. In the UK, a loss of jobs could be perceived as a direct consequence of Brexit. On the German side, meanwhile, Angela Merkel fears that the restructuring of German sites could accelerate her fall in the polls ahead of September’s elections.
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