Unionized Workers Discussing a Strike
The union and the management of GM Korea failed to narrow differences in their 21st round of wage negotiations on Oct. 29.
In the negotiations, the management suggested biennial wage talks, an increase in base pay of 22,000 won and seven million won in bonus to be paid by next year. The payment increased 1.5 million won from the previous offer and the management removed the precondition that 1.3 million won can be paid only when the company is above its break-even point at the end of this year. On the management’s part, this is a substantial concession in that the company’s cumulative losses amount to three trillion won or so and COVID-19 led to a production loss of 60,000 cars in the first half of this year.
However, the union refused to accept the biennial wage talks and the unionized workers are currently discussing a strike.
Under the circumstances, GM Korea’s business conditions are deteriorating at a rapid pace. The company has been in the red for six years and its sales volume for the first three quarters of this year, 268,961, dropped 12.9 percent from a year earlier. Its current production losses amount to 250 billion won and it is having difficulties in auto parts supply and export alike. Besides, it is involved in multiple labor lawsuits and the court deposit it must pay immediately amounts to 200 billion won.