GM agrees a deal but 5,000 jobs still in the balance

September 10th, 2009

I have written a couple of times in the blog about General Motors being in trouble and the effect this would have for the British workers. Well today it has been announced that General Motors have agreed a deal with Canadian car parts manufacture Magna who will be buying Opel and Vauxhall.

However, the deal still leaves the 5,000 British workers concerned for their future. Apparently the company is committed to keeping the Ellesmere Port plant operational, which is where the Astra is made, and will honour an existing contract to produce vans in Luton but this is only until 2013. They said that they will try and keep the plant in operaton after 2013 but this doesn’t instil much confidence in the workforce.

UK’s Business Minister, Pat McFadden try to abate some concern by saying:

“We will now continue our discussions with Magna: they have told us of their commitment to continuing production at both Ellesmere Port and Luton and we will work to make sure we get the best possible outcome for the UK.”

Let’s hope that this can be resolved soon. Especially in this current economic climate people need job security.

Entry Filed under: cars