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.