The union representing General Motors Korea laborers staged a two-day strike this week as they continue to bargain for increased wages, larger cash bonuses and a performance-based bonus.
According to The Korea Herald, GM Korea workers held a four-hour strike on Tuesday and followed by another four-hour walkout on Wednesday.
“Union leaders will hold a meeting on Thursday to decide on whether to enter another round of strikes,” GM Korea union leader Dang Sung-geun told The Korea Herald.
Employees previously sought a 5.6 percent wage hike, performance-based bonuses worth two and a half months of wages and a cash bonus worth $5,400 USD. GM Korea shot down that proposal, though, continuing long contract negotiations that began in early July.
In a meeting attended by more than 500 GM Korea executives and employees last week, company CEO Kahem Kazer said cautioned against a strike to ensure the long-term health of the company.
“Executive and staff members’ participation and support are indispensable for our financial goals and the promise-keeping process,” Kahem said. “All of us should make more efforts for the same goal until achievements are realized.”
In a statement, GM Korea said it cannot currently afford to give workers a raise and extra bonuses due to the automotive industry downturn both locally and outside of South Korea. It also has yet to return to profitability after being bailed out last year.
“At the outset of wage negotiations, the company explained that it is difficult to accept the union’s requests for a salary increase and the payment of performance bonuses due to the unfavorable business environment both internally and externally and the fact that the company has not yet returned to profitability,” GM Korea said.
GM Korea currently builds the Buick Encore and Chevrolet Trax for local consumption and for export to the United States. It was also recently allocated the Buick Encore GX and Chevrolet TrailBlazer compact crossovers.
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Source: The Korea Herald
Comments
The South Korean people are the absolute worst when it comes to adopting foreign goods as General Motors wouldn’t lose very much if they simply packed up and left because Koreans will never accept Chevy like they do with Kia or Hyundai.
Maybe if the U.S. applied an import tax to every South Korean product sold here, then the economy changes and people will buy more U.S. brands, too.
Koreans do adopt foreign goods. They buy alot of BMWs, Mercedes Benz, and Toytoas. They also purchase IPhones and use Google services like Google Maps. Koreans are also large consumers of American beef,chicken,pork, and farm produce. The reason why GM is doing bad in Korea is that GM doesn’t make cars that Koreans want.
Here is an article that explains why Koreans don’t purchase American cars.
https://www.forbes.com/sites/rachelpremack/2017/11/14/the-real-reason-why-koreans-wont-buy-american-cars-and-its-not-tariffs/#372b70e44d12
After being bailed out and sales being in free fall, that union wants all combined almost 18% wage increase (!). And in 3 years they will be “shocked” that the company closes for good. That union shows criminal behavior.
the korean economy is struggling. they should just be grateful they can put kimchi on the table for their family.
Allocate all GM Korean product to Lordstown where it belongs. Retooling the line from Cruze platform to compact CUV platform would be an investment worthwhile to GMs bottom line and a wise PR move.
Instead of a pay raise, make the union workers sell the cars, too , and get a 18% commission out of every car they sell. That is what smaller companies do worldwide. Every employee is a salesperson!