Unions reach preliminary deal on Spanish Opel plant

The regional government had been mediating in talks on the plant's restructuring after negotiations with the carmaker broke down and were followed by threats of industrial action by labour representatives.

The accord includes a 1 percent wage rise for 2009 and 2010 and a 2 percent rise in 2011 and 2012, local newspaper El Heraldo de Aragon reportedd on Friday citing a representative from Spain's second-largest union, Union General de Trabajadores.

Labour representatives and Opel had also agreed on previously announced lay offs of 900 workers from the plant's 7,000-strong workforce, the newspaper said.

On March 2, GM tripled its funding commitment for Opel and cut its request for state aid in a bid to win support from European governments and labour representatives.