The European Metalworkers’ Federation (EMF) condemns GME’s decision announced at
its meeting with the European Employee Forum (EEF) earlier this week to close the plant
in Azambuja by 31st December 2006, thereby simply delaying the closure by two
months.

“This closure of a profitable plant is not a reduction of overcapacity or the restructuring
of a crippled company. It is a fundamental change of GME’s strategy which plans to
close its plants in Europe and to transfer production to low-cost countries” commented
Klaus Franz, the Chairman of the (EEF).

GME management has a moral and contractual responsibility towards the region and the
Portuguese government, which invested 41 million € of public funding in Azambuja and
obtained as a counterpart the guarantee that the production would be maintained until
2008. The EMF therefore expects that that GME management will work on industrially
and socially acceptable solutions for every employee in the Portuguese location, for the
region and for the government.

“The EMF expects GME management to work constructively with the Portuguese
government to attract new investors to the Azambuja site. Sustainable employment is
essential for the economic and social survival of a whole region, for the future of GME
employees and their families” explained Peter Scherrer, the EMF General Secretary.

During the last four weeks a solid and powerful solidarity action campaign has taken
place involving all 18 GM Europe locations. “If GME management is not willing to fulfil its
social responsibilities the metalworkers’ trade unions will have to react accordingly”
stated Peter Scherrer.

Further talks between GME management and the EEF on the measures to be taken in
Azambuja are planned to take place after the vacation period.
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PRESS 21/2006

The EMF is the representative body defending the interests of workers in the European metal industry. The EMF has a mandate for the external representation and coordination of the metalworkers' unions and a mandate to engage in bargaining at European level.

For further information please contact:

Editor, Peter Scherrer, EMF General Secretary