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German minister, labour reps welcome PSA work contract assurances for Opel merger

BERLIN, April 5 Germany's economy minister said she had held constructive talks with PSA Chairman Carlos Tavares on Wednesday about the planned merger of the French group with Germany's Opel and felt reassured that existing labour deals would remain.

Germany has welcomed the merger, provided the Opel brand stays independent and the merged group respects existing labour agreements, protects Opel sites and gives job guarantees.

"I particularly welcome the commitment by Mr Tavares to respect and continue all the collective agreements," said minister Brigitte Zypries in a statement.

"The federal government and federal states will continue to lend their constructive support to the process of merging PSA and Opel/Vauxhall," she added.

Tavares said he had reaffirmed PSA's ambition to "build on the quality of relations with employee representatives as a key factor of success of the company". (Reporting by Madeline Chambers; Editing by Michelle Martin)

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