Vauxhall safe in Magna deal

The Unite union is claiming it has  agreed a deal with Magna for no compulsory redundancies at Vauxhall.

With all the to-ing and fro-ing in the deal to offload Europe’s GM businesses – Opel and Vauxhall – it had been feared that Opel would win and Vauxhall would lose. But it seems that union bosses in the UK have secured a deal with Magna which will prevent any compulsory redundancies and secure jobs at Ellesmere Port and Luton until 2013.

The deal allows for 600 job losses at Vauxhall in the UK, but none of those are to be compulsory. It had originally been estimated that Magna would cull 1200 jobs in the UK when it completes its deal to take over Opel and Vauxhall. Also agreed is a pay freeze for two years and other cost-cutting measure in return for the promise of no compulsory redundancies.

It’s also being reported that the Magna deal with GM will conclude this week and, with a deal now seemingly in place that gives Vauxhall a clear and agreed future, they can now get back to producing the new Astra at Ellesmere Port.

A good result.