Unions urge more UK action to safeguard Vauxhall jobs

By Christina Fincher

LONDON, May 30 (Reuters) - Union leaders on Saturday urged the government to do more to safeguard British jobs after Germany announced a deal to save the European arm of stricken U.S. car giant, General Motors GM.N.

After six hours of talks on Friday, Germany reached a deal with Canadian auto parts group Magna (MGa.TO: Quote, Profile, Research) and its Russian banking partner Sberbank to take over most of GM Europe, which includes German-based Opel and British-based Vauxhall brands.

While Germany appeared to have won guarantees no Opel plant would close, uncertainty remained over what the deal would mean for the 5,000 workers employed at Vauxhall plants in Luton and Ellesmere Port.

Magna has not ruled out job cuts.

"The Germans have been central to this. We appear to have been on the sidelines," said Derek Simpson, joint general secretary of the Unite union.

"With the German plants literally guaranteed security, thanks presumably to the German government's involvement and the billions of euros that they seem to be putting up, that causes a worry for everyone else."

British Business Secretary Lord Mandelson said he would seek swift confirmation from the Canadian firm that none of the Vauxhall jobs in Britain would be lost.

But union leaders criticised Mandelson for not being more involved in the negotiations, which took place in Germany and were led by Chancellor Angela Merkel.