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GM Korea Urges Employee Support As Union Threatens Strike

The president and CEO of General Motors Korea has urged his employees to support the company after the local worker’s union staged a rally this week demanding increased wages and other concessions as part of planned labor negotiations later this year.

In a meeting attended by more than 500 GM Korea executives and employees this week, company leader Kahem Kazer said having all employees on board is important for the company to meet its goals going forward and cautioned against the worker’s rally 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.”

The promises Kahem is referencing relate to the agreement the automaker signed with parent company General Motors and the state-run Korea Development Bank last year. Under that bailout deal, GM gave GM Korea $3.6 billion to help turn its struggling business around, while the KDB, which has a 17 percent stake in GM Korea, forked over another $750 million. For its part of the deal, GM Korea will build the Chevrolet TrailBlazer and Buick Encore GX and continue to build the Buick Encore and Chevrolet Trax. The automaker also recently added 100 engineering jobs in the country and established a new regional HQ there for all of Southeast Asia.

Last year was a year of change and our goal for this year is to keep our promises with the South Korean government and shareholders such as Korea Development Bank,” Kahem said, adding, “At present, we are keeping our promises in accordance with our future plan.”

Business Korea reports the labor union was threatening to disclose the names of employees who did not participate in the worker’s rally. The English-language Korean publication claims the union is seeking a 5.65 percent rise in base pay for laborers, along with 16.5 million won (about $13,500 USD) in bonuses. It also wants to see GM Korea do away with a plan that would cut welfare benefits for employees.

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Source: Business Korea

Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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Comments

  1. Instead of exporting those products to the US from Korea, BUILD them here in the USA!

    Reply
    1. “Instead of exporting those products to the US from Korea, BUILD them here in the USA!”

      Sure thing chief.

      Are you prepared to earn even less while you assemble them? An over inflated UAW line-worker wage getting tacked onto each unit built would make the MSRP of this vehicle climb right out of the market.

      Reply
      1. Really? The Cruze was reasonably priced using UAW labor as was the Sonic.

        Reply
      2. Labor cost of GM assembled vehicles 5%. source:GM

        Reply
    2. USApride
      In South Korea, GM builds the Spark, Trax & Encore

      In the U.S. GM builds: Escalade, Yukon, Suburban, Tahoe, Traverse, Enclave, XT6, XT5, XT4, Acadia, Malibu, Corvette, Camaro, CT4, CT5, CT6, Bolt, Sonic, Colorado, Canyon, Express, Savana, most Silverados and most Sierras.

      See the Difference?

      Reply
      1. And GM imports more cars from Mexico, China, and South Korea that Ford and FCA, and they employ less people than Ford and FCA.

        Reply
        1. You guys realize GM always been a global company. GM Korea supplies vehicles to not only to Korea but SE Asia, Siberia, Australia and the rest of the Pacific. It doesn’t make sense to make it in Michigan and ship them out.

          Reply
  2. I don’t see why GM looks to kill off the UAW here in the states, but puts up with the unions in Korea. The old Trax and Encore are overstocked here and they should stop importing them. The VSS platform of the Encore GX and Trailblazer should have been put in Lordstown or Oshawa, as that is a future platform for GM’s EV new models.

    Reply

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