6 percent net loss of income. What a sad birthday! On the brand’s 150th birthday – Opel was created on August 23, 1862 –, the company’s management announced, with unions’ consent, that it was placing 9,300 employees on short-time working in September. Limited to the European market by its parent company, General Motors, and particularly present in southern Europe, Opel has been badly hit by the impact of the public debt crisis in the euro zone. “The European market is crumbling down” confirmed Opel HR manager Holger Kimmes. According to the Center for Automotive Research (CAR, Duisburg University), the carmaker loses about €939 for each car sold. Hence the need to save money quickly. During the negotiations, the employee representatives refused to discuss shifting to the 4-day week (from 35 down to 28 hours a week) further. According to Wolfgang Schäfer-Klug, chairman of Opel’s central WC, this option would have led to pay cuts around 20 percent. With short-time working, Opel keeps paying the hours worked and the loss of earnings is partly covered by a subsidy from the Federal Employment Agency. “Thus, our employees’ financial loss will be limited to around 6 percent of their net salary” Schäfer-Klug added.
the carmaker loses about €939 for each car sold. Hence the need to save money quickly. During the negotiations, the employee representatives refused to discuss shifting to the 4-day week (from 35 down to 28 hours a week) further.
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