Opel’s Works Council Blocks Voluntary Buyout Program

The works council that represents hourly employees at PSA Group’s Opel unit have halted a voluntary buyout plan, claiming PSA has already met its reduction targets in Germany.

The council cites job cuts at Opel factories in Eisenach, Kaiserslautern and Russelsheim, according to Reuters, which cites an internal memo. Opel says about 1,000 workers have applied for the now-blocked buyout offer.

PSA, which acquired Opel from General Motors Co. last August, aims to reduce the unit’s workforce in Germany by 3,700 members. The company has agreed not to fire workers. The voluntary reduction programs are part of PSA efforts to restore Opel to profitability after 20 years of losses under GM management.

The council demand is the latest confrontation between PSA management and Opel workers. Earlier this month employees at the Eisenach plant rejected PSA’s request that they delay a scheduled 4.3% pay hike this month in exchange for a promise to assign future vehicle programs to the facility.

Workers at Opel’s Vauxhall plants in Ellesmere Port and Luton, England have agreed to wage concessions to protect the future of their facility. Workers at those facilities will receive a one-time payment of £750 ($1,000) and a 1.5% pay increase in January.