Unite reaches deal with Magna to save Vauxhall jobs

The future of Vauxhall and its 5,500 workers have been safeguarded today after the Unite union announced it has reached a deal with Magna, the Candian car parts firm and proposed new owners of Vauxhall and sister company, Germany-based Opel.

However, in order to protect jobs at both Vauxhall plants (Ellesmere Port and Luton), the union has been forced to agree a two-year pay freeze and 600 voluntary redundancies.

However, the outcome appears to be far better than the 1,200 of the 5,000 Vauxhall jobs that were under threat.

Business Secretary Lord Peter Mandelson said while there was still “some way to go” in agreeing the financing of the deal, it was “a much better deal than was offered to us in the first place”.

Tony Woodley, joint general secretary of Unite, added that the deal “gives both plants job security and a future through to 2013, providing a good basis for a long-term future beyond that”.

There were fears that up to 10,500 jobs at Opel and Vauxhall could be axed by Magna.

Finally, Unite said it has secured an agreement from Magna confirming that Ellesmere Port will produce the next generation Astra, set for 2016, while the Luton van plant will be maintained as a key site within Magna’s UK portfolio.

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