GM Korea and the local auto union failed to reach a wage deal after marathon talks on Thursday. Now, both sides are holding one last round of talks today in an attempt to reach a deal and avoid bankruptcy, Reuters reported.
The automaker is standing by its needs for wage concessions from the union and also requested government funding to help keep three South Korean plants online. The unit will still close the GM Gunsan plant next month. The closure is reportedly a main issue for the auto union, and the body is attempting to provide job security for 680 workers affected by the decision.
Without a deal, GM Korea plans to hold a board meeting to discuss bankruptcy protection later today.
If it comes to bankruptcy, GM Korea will need to present the plan to shareholders for a vote and receive 85 percent support for the action. The state-run Korean Development Bank, which has owned a stake in the unit since General Motors bought out Daewoo and established GM Korea, said it may sign a tentative funding agreement by April 27th if initial due diligence reports come back positive, though the KDB hasn’t thrown its weight behind the automaker just yet.
GM Korea employs 16,000 people and remains an important source of design, engineering and production for GM on a global basis.