Despite 530 Billion Won in Loss
Controversy has been aroused by the GM Korea Labor Union’s demand for a 500-percent performance-based bonus in their wage negotiation of this year. It is pointed out that the trade union's demand went too far as the automaker suffered hundreds of billions of won in losses for three straight years due to drops in export volumes.
According to the automobile industry on April 27, the labor union of Korea GM demanded a 500-percent performance-based bonus in addition to an increase of 154,483 won in basic wage in its wage demand this year. Compared to 2016 (an increase of 160,000 in basic wage and a 400-percent performance bonus), the union has put forward increased demand. The GM Korea Labor Union additionally demanded equal and higher employee allowances by job groups and the extension of the retirement age to 61.
GM Korea was the only Korean automaker to post a deficit last year among five automakers in Korea. Last year, GM Korea posted an operating loss of 531.1 billion won which forced the automaker to chalk up 500 billion won in loss for the second consecutive year. Its net loss hit 333.1 billion won in 2014, 993 billion won in 2015 and 631.5 billion won in 2010, totaling two trillion won in the three years.