An article published last Tuesday in the New York Times (www.nytimes.com) discussed the recent game plan for Opel, the European unit of the well known General Motors. They vowed "to become profitable in 2012 by cutting capacity by 20 percent and reducing its work force by 8,300, while introducing new models." They will be closing the doors to its plant in Belgium which will leave 2,600 workers without jobs equaling about 5 percent of the work force in Europe and will be cutting jobs in the other plants. They are also planning on introducing eight new models and upgrades by 2011. After the announcement, around 27,000 workers and union representatives protested in the streets against the upcoming job cuts.
Now, along with cutting costs and raising production of new models comes the issue of the increased labor that will be required from those who were "fortunate" to keep their jobs. Bad news is, it is safe to say that the chances of a pay increase is not very likely. As Marx would put it, Opel is out for its self interest at the cost of the disadvantage of the working force self interest. Looking at the big picture, Opel's decision will be leaving many unemployed workers desperately scrambling for jobs to sustain their household; and with times being tough they become more vulnerable to becoming cheated of deserving wages at other perspective jobs that all of those people will be competing for.
