GM Portugal and Employee Representatives Agree on Transition Package for Azambuja Workforce

General Motors Portugal (GMP) and the employee representatives agree on a separation package to compensate the Azambuja Plant employees for the termination of their work contracts due to the end of production at the Azambuja plant by the end of the year. GMP’s offer is the best and most generous ever made by any industrial company in Portugal.

The financial conditions and details of the transition package were accepted by the employees. According to the agreement, GMP will pay, in the minimum, to every employee who has a permanent working contract, the corresponding to two monthly base salaries for each year of seniority. Those employees whose base salary does not reach €1,500 will receive one monthly base salary plus €1,500 extra for each year with GM Portugal. In addition, GMP will provide each employee for two years from the contract termination date with the following benefits, within the conditions actually in place in the company: health insurance, school subsidy, subsidy for the employees with disabled children and the individual accruals existing in the GMP Supplementary Pension Plan. Furthermore the employees benefit from special conditions to acquire Opel cars and parts.

The compensation package is linked to the fulfillment of a production plan incorporating the production of 23,062 Combo units until December 21, 2006, and the relocation of the Opel Combo production to Zaragoza. Eric Stevens, GM Europe Vice President for Manufacturing, said: “This is the best transition package ever presented in Portugal and it confirms GM’s commitment to minimize the impact of the Azambuja plant shutdown on its workforce. We appreciate the cooperation of our labor representatives to achieve such a constructive solution."