Vauxhall's 3200 workers have agreed to a two-year pay freeze in exchange for job guarantees.
The deal, which is on the brink of being agreed between the workers' unions and Vauxhall/Opel, are part of a company-wide effort to save 265 million euros (£225 million) a year in 'operational savings'.
A statement from Opel’s headquarters in Rüsselsheim, Germany, said that the company had laid down a framework agreement with its European Employee Forum, which includes staff representatives from all its plants.
"The parties made good progress and during the next days, management and employee representatives will work towards a final agreement," Opel said. At this point, details of the proposed agreement cannot be disclosed."
The pay freeze will apply to all Vauxhall workers at both the Ellesmere Port and Luton plants.
Workers at other European Opel plants are expected to have to agree to pay cuts in order to get job guarantees.
About 8000 workers are being shed from a European workforce of 48,000. The bulk of the job losses will be in Germany and Belgium.