Strikes cloud future of GM Korea

GM Korea’s labour union, that will be in wage and collective negotiating negotiations with administration, had been set-to stage another four-day partial strike starting today (Tuesday 17 November), increasing the concerns facing the automaker because struggles with poor performance.

According to the Korea Herald, the union said Monday it had decided at a main dispute committee meeting to stage a four-hour partial strike from Tuesday to Friday. This might would be the 4th limited strike inside 12 months’s wage negotiation process.

A week ago, GM Korea stated it had been reconsidering its in the offing financial investment in its Bupyeong plant in Incheon responding to continued attack activity by its unionised employees over wages. The organization had been planning to invest in the production of an innovative new design for regional purchase and export.

The Korea Herald said the automaker’s labour and management representatives had held 24 rounds of wage negotiations this present year, but didn’t get a hold of a place of contact. Limited attacks held on eight days over the past 2 months had been estimated to own triggered production losses comparable to about 12,000 cars.

The administration proposed to give the wage settlement period to couple of years now only and also to spend KRW8m (US$7,229), including bonuses, to every user.

But the union opposes the extension of the negotiation period and requires three things: an increase in the beds base wage of KRW123,304 won every month, an annual bonus of 400% of ordinary wages plus KRW6m, and allocation of new cars towards organization’s second plant in Bupyeong, Incheon.

Bupyeong Plant number 2 is scheduled to create the Trax compact SUV and Malibu sedan by July 2022. But if these vehicles tend to be discontinued, there are not any extra manufacturing plans. The management proposed to create types of a crossover utility automobile at Bupyeong Plant No. 1 however the union’s position is the fact that the organization is not reliable unless a specific new car design and allocation volume are verified.

The report stated the union has been boycotting overtime work since 23 October and has already been staging limited attacks since 30 October. This month, four-hour hits have been held on 6, 9 and 10 November.

Due to the fact workers carried on to refuse to work overtime final month, the country’s automobile industry production fell 4.3percent 12 months on 12 months, based on the industry ministry. In October, GM Korea result fell about 7,000 products 12 months on year, accounting for 45.7per cent associated with total output reduce, the report stated.

A business ministry official informed the Korea Herald: “The overall car production decreased due to the labour-management dispute in GM Korea and a-two day decrease in trading days because of the Chuseok getaway.”

The report noted GM Korea ended up being loss making for six consecutive years at the time of last year. It posted a net reduced KRW859.3bn in 2018, and its own loss reached KRW320.2bn last year.

Amid the labour disputes and weak earnings, rumors of GM Korea pulling out associated with market tend to be resurfacing, the Korea Herald said.

GM Korea CEO Kaher Kazem stated in September this past year that, in the event that labour-management dispute worsens, GM headquarters will even give consideration to withdrawing from Korea. He added GM’s refusal to withdraw from Korean marketplace is feasible only if labour-management relations make contact with normal.

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