Tensions rose in South Korea between GM Korea and the union after members entered the CEO’s office and caused destruction. Reuters reported on Friday that the protest came after GM Korea failed to make bonus payments it agreed to last year. With the entity’s cash crunch, the company could not pay out the bonuses.
South Korea urged General Motors and the union to come to a new wage deal quickly as tension continues to mount. Union members entered the GM Korea CEO’s office, demanded his resignation, and went about breaking items and removing furniture from the space.
Paik Un-gyu, minister of trade, industry and energy for South Korea, said it will be difficult for the union to gain public support if it carries out more destructive acts.
So far, discussions haven’t moved forward much. GM Korea will file for bankruptcy on April 20 should the union not make any concessions. The union has accepted a wage freeze and no bonuses for 2018, but it will not accept proposed benefit cuts or the Gunsan plant’s closure. GM Korea may also cut a shift at the Bupyeong plant as the plant is also under capacity.
GM also presented a $2.8 billion investment for South Korea over the next 10 years which comes with additional layoffs and a request for co-investment from South Korea itself.
Comments
Man these unions sound like the one’s in the United States. Just goes to prove Unions are nothing more than thugs.
Hey, Sean…Thought there was a deal and GM would cave, as you reported? The opposite happened.
Koreans bet the wrong hand and lost. Should have been glad they even had jobs given how poorly they run their own economy. Dont bite the hand that feeds you. Goon mentality will never win.
They act as if they have a right to employment.
It’s a difficult situation for everyone as the Union was promised the bonus payments and you’ve got tot think the workers probably had plans on what to do with the money; but given horrific sales where GM of South Korea is days from filing for bankruptcy, there’s little that can be done except possibly South Korean government to give a guilt treatment and plead GM of North America to help.
Unions are run by thugs.
There was a time when the core principles of workers rights and the need for laws/regulations guaranteeing them were necessary; Unions were instrumental in bringing that about. But now, Unions are little more than communist-light organizations which strong arm and shakedown the industries in which they exist.
They are run like a worker’s mafia, and tend to hurt both the businesses on which they depend on, and the workers they claim to support.
I am in no way a union supporter.
In the past they did start with good intentions and did serve the workers well in some harsh times.
Things did get corrupt in some major ways for many years and the unions were only out fort their leaders.
Today more unions have lost power as workers are generally being treated fairly and if not people just go to a new job. The goverment unions do still remain corrupt and political as the can elect their own pay raises.
But unions like the UAW have come around and now own a part of the company. This makes it to their advantage not to demand crazy things and do better on the job.
The unions in Korea are a major problem in al, industries. It is why many of their companies have relocated to China, Mexico and even here. It is the prime reason GM would like to get out and just imports cars there.
They keep this up and GM will close the doors. Korea is not like most Asian counties and things can get out of hand there labor wise.
And why is it that wages have been stagnate for 30+ years while all the money is paid out in management bonuses? Is that because of union thugs? US union workers have the highest productivity anywhere. Wake up America, demand your fare share! UNITED WE BARGIN, DEVIDED YOU BEG!
wages are stagnet due to NAFTA and globalization . The mininum wage in Mexico is $83 peso PER MONTH . That works out to (83/18) aprox $4.61 PER MONTH . The UAW should have informed workers of the coming storm and made adjustments to thier saleries to make the host company more competitive. A job is better than no job. Plus housing prices in an area where wages decline will result in lowere housing costs thus not such a major adjustement in buying power. This is a two poilitical party falure. They toke money from lobiest and sold out the American worker.
GM has bad management in Korea, they can add more suv’s to produce, and relocate the spark and sonic in Korea, a new Orlando and export it to every market where GM is present.
Re birth Daewoo could be a good solution too.
In addition, I don’t understand how hyundai and kia makes profits in Korea while GM no.