Britain's Unite union said Tuesday it has agreed a deal with Canadian auto parts maker Magna International to secure the future of two U.K. factories in return for cost savings, including a two-year pay freeze.
The two Vauxhall plants are part of Opel, the European unit of General Motors Co. which was sold to a consortium of Magna and Russian bank Sberbank last month.
Unite said that the deal committed Magna to retaining the Vauxhall plants at Ellesmere Port and Luton, which together employ around 5,500 workers, until at least 2013.
Up to 600 jobs are likely to be lost through voluntary redundancies, around half the positions that the union had …
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