Spanish unions reject Magna offer

Spanish unions have rejected Magna's latest offer for the future of Opel's plant in Zaragoza and will vote on strike action, a union leader has said. Magna, the Canadian car parts maker that is close to tying up a deal for General Motors' European arm, has proposed cutting jobs at the plant. Unions are trying to secure assurances about the future of the plant and the number of layoffs. Last week, UK unions agreed terms with Magna about pay and job security. UK union leaders agreed to a two-year pay freeze and other cost-savings in return for having no compulsory redundancies. But their Spanish counterparts could not reach a similar agreement with Magna. "All the unions felt the [Magna] offer was insufficient," said Jose Juan Arceiz, a leading union member. Opel employs about 7,000 people at its plant in Zaragoza. When GM agreed to sell Opel to Magna last month, there were concerns that Spanish and UK plants may take the brunt of any job cuts following the German government's pledge to offer 4.5bn euros ($6.7bn; ?4.1bn) in exchange for guarantees on German jobs.