The Militant - November 2, 2004 -- GM workers walk out in Germany to protest layoffs

Vol. 68/No. 40 November 2, 2004

GM workers walk out in Germany to protest layoffs

BY MICHAEL ITALIE
Up to 6,000 auto workers went on strike October 14 at the General Motors Opel factory in Bochum, Germany, after the company announced massive job cuts in its European division. That day, GM Europe chairman Fritz Henderson told reporters that the company would eliminate 12,000 jobs in Europe, one-fifth of its workforce there. Opel plants are projecting cutting 10,000 of 33,000 jobs in Germany by 2008. GM, the world’s largest auto manufacturer, said the cuts were aimed at saving the company $620 million per year by 2006.

Workers on the afternoon shift at the Bochum plant began the strike, making use of their “right of information” from the union about the announcement of job cuts, a union official said. A company spokesperson had singled out the Bochum plant, located in western Germany, as having a “competitiveness issue.” The evening crew then stayed off the job and the morning crew joined the strike the following day. Workers remained at work at the other Opel plants in Germany.

The social democratic government in Berlin called for workers to end their strike at Bochum and backed the company’s actions. “It’s clear this is also about Germany as a place to do business and it’s clear that the reform process… has to go further,” said Economy Minister Wolfgang Clement.

Berlin has carried out a series of measures that cut social programs. The latest, known as Hartz IV, cuts deeply into unemployment benefits for working people in Germany and will have the greatest impact in the East, where unemployment is at 20 percent. The national jobless figure hit 10.7 percent in September, the highest it’s been in five years.

“Without a doubt so-called non-wage labor costs play a very important role. We have to do everything we can to free labor from additional costs,” said Clement. “This process has to go further.”

This “process” is advancing. Factory owners in Germany are taking advantage of workers’ uncertain job prospects to push through concession contracts with their unions. Department store giant Karstadt Quelle won concessions October 14 from the Verdi union in order to smooth the company’s path to receive loans from its creditor banks. The bosses will chop 5,500 jobs from its payroll of some 100,000, and freeze wages for the next three years. Under a concession contract signed earlier this year, Siemens workers will now be working 40 hours per week instead of 35, with no increase in pay. DaimlerChrysler won $600 million in wage cuts after threatening to shut down operations at its Stuttgart plants.

Workers in Germany face job losses at Volkswagen as well, where negotiations between the company and the IG Metall union have stalled over company demands for “cost reductions.”

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