Opel Belgium: new round of restructuring threatens jobs
Published: 27 October 1997
The rumour had been spreading for a while in the Belgian Opel car assembly plant in Antwerp that a new round of restructuring was to be expected. It proved that there is no smoke without fire: on 18 October 1997, management announced officially that about 1,900 of the 7,800 jobs are threatened. For the whole of Opel Europe job losses, according to trade union sources, could amount to between 10,000 and 12,000 out of a total workforce of 85,000. Opel Belgium is under strong pressure from itsZürich head office to cut production costs. The whole Opel group is counting heavy losses due to poor sales, and the Antwerp plant has suffered from poor profits in recent years.
On 18 October 1997 management at the Belgian Opel car assembly plant in Antwerp announced a new round of restructuring, with about 1,900 of the 7,800 jobs threatened.
The rumour had been spreading for a while in the Belgian Opel car assembly plant in Antwerp that a new round of restructuring was to be expected. It proved that there is no smoke without fire: on 18 October 1997, management announced officially that about 1,900 of the 7,800 jobs are threatened. For the whole of Opel Europe job losses, according to trade union sources, could amount to between 10,000 and 12,000 out of a total workforce of 85,000. Opel Belgium is under strong pressure from itsZürich head office to cut production costs. The whole Opel group is counting heavy losses due to poor sales, and the Antwerp plant has suffered from poor profits in recent years.
The bottom line of current restructuring is a reduction in production capacity to 300,000 cars per year. This reduction is to be carried out partly through ending production of the Vectra model in Antwerp (it will be produced only in Rüsselsheim in Germany and Luton in the UK). The Antwerp plant will produce only the new Astra model. This model is smaller, and its production requires considerably less personnel. This will result in a move from the current three-shift working pattern to a two-shift plus a small night-shift pattern.
For Opel Antwerp, this is the second large-scale reorganisation over a five-year period. The 1992 reorganisation was taken care of largely through a system of early retirement (at age 52) and the company is again looking in the direction of the Ministry of Labour to receive authorisation for designation as a "company in restructuring" which will allow for a new round of early retirements, in order to prevent a more brutal form of lay-offs. In addition, the company is proposing measures for early leavers on a voluntary basis. Furthermore, temporary contracts will not be renewed. "Outsourcing" is also considered as a possible additional measure.
Unions and employees are reacting cautiously to the news. The company has a strong tradition of "social peace" and bargaining and management has indicated that it does not want to breach it. Negotiations with the unions were opened immediately. The unions have suggested working time reductions with wage losses as a way to prevent lay-offs, and also wish to review the decision to close the Vectra assembly line.
Eurofound recommends citing this publication in the following way.
Eurofound (1997), Opel Belgium: new round of restructuring threatens jobs, article.
