Where It will End?
Unionized GM Korea workers began to hold an all-night protest on April 9 in Incheon City, demanding bonus payment. At the same time, around 120 coworkers did so near the Blue House.
On April 10, they are going to hold a rally in front of the Blue House and in Gwanghwamun before discussing the cause of their company’s insolvency in the National Assembly building. 4,000 or so unionized workers are scheduled to hold a demonstration in Incheon on April 11 and more than 1,000 are scheduled to do so at the North Jeolla Provincial Government building located in Jeonju.
GM Korea should come up with a business recovery plan, on or before April 20, prior to funding by the GM headquarters and the Korea Development Bank. The workers are opposed to bonus return and employee benefit reduction that may be included in the plan. In addition, the workers are insisting on a stock distribution of 30 million won (US$27,000) per person, retirement age extension to 65, layoff prohibition for 10 years, etc.
GM Korea will collapse unless the management and the workers meet halfway. The Company is in need of 2.7 trillion won (US$2.4 billion) this month, including 300 billion won (US$270 million) to be paid for partner firms, 72 billion won (64 million) to be paid in bonus, 100 billion won (US$90 million) for monthly wages, and 1.688 trillion won (US$1.5 billion) for repaying the loan from the headquarters. Although the monthly wages are likely to be paid on April 10, its cash is likely to run out soon.
In the meantime, GM International President Barry Engle is scheduled to visit South Korea this week to have talks with the workers. He is predicted to put more pressure once his talks with the workers do not turn out well.