GM Korea employers and employees resumed their wage negotiation on April 16 and GM Korea President and CEO Kaher Kazem met with labor union leaders.
The employers demanded a cut in employee welfare benefits while the unionized workers refused to accept it and demanded non-dismissal for 10 years, a 30 million won-worth stock payment per employee following a debt-equity swap, etc. The GM headquarters, in the meantime, is planning to file for receivership without any new investment unless they meet halfway on or before April 20.
Many in the industry say the meetings on April 16 reduced the possibility of receivership. The wage negotiation was resumed in 16 days after the seventh round failed on March 30. Things were the worst during the period. The unionized workers broke into the president’s office on April 5 after their bonus was not paid and the management prepared to go into receivership.
The schedule is tight for the remaining four days. The Korean Metal Workers’ Union is going to stage a demonstration at GM Korea’s Bupyeong Plant in Incheon City on April 18. Unionized GM Korea workers are planning to put pressure on the management even after the deadline.
Under the circumstances, Deputy Prime Minister Kim Dong-yeon reported the current status of the issue to President Moon Jae-in, reconfirming the three principles of shareholders’ responsible roles, pain shared by every interested party, and business recovery ensuring sustainable growth. This means the government will intervene only when every interested party makes a concession.