IG Metall and Opel Plan Labor Deal by Oct.26th image

IG Metall, the German trade union, plans to close a labor deal with Opel, before GM reports its third-quarter results.

“The plan is to achieve a result by Oct. 26,” IG Metall said in a letter on Friday to the 20,800 Opel employees in Germany.

GM is expected to report its third-quarter results on October 31st, which is also the day when Opel has to pay a 4.3% industrywide wage hike to its workers in Germany if it doesn’t sign a new deal with IG Metall. This is the first time when the labor union calls for management to exclude compulsory redundancies through 2016, as part of a possible new agreement.

IG Metall said that Opel is willing to sign a new labor deal and extend the deadline which last through 2016, reached with the mid-term business plan approved in June. In June Opel announced its plans to stop production in 2017 at its Bochum factory, in Germany, where it manufactures the Zafira Tourer minivan, two years later than previously planned.

Morgan Stanley analyst Adam Jonas said in September that GM has to sell Opel after the European crisis made the automaker lose $16 billion on the continent over the last 12 years. He predicts another $1 billion loss through 2021.