More than 20,000 production losses remain injured
Repeated strike next year disrupts investment plans
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GM Korea’s labor and management have passed the crisis of labor-management conflict by virtually finalizing a wage and collective agreement (those negotiations) for five months since July. However, there is plenty of room for GM Korea’s labor and management to face a conflict next year in the labor union. Accordingly, it is observed that GM Korea’s normalization of management will not be easy.
According to related industries on the 20th, GM Korea suffered not a few injuries during the journey to finalize the negotiations this year.
GM Korea’s sales in November this year recorded a total of 21,384 units, including 6,556 domestic units and 14,828 units exported, down 45.6% from the same period last year.
The union held a partial strike for a total of 15 days after the first meeting of the labor union on July 22nd. In the process, more than 25,000 units of production were lost. When the production loss caused by Corona 19 this year was added to the 60,000 units, a total of 85,000 units were lost.
Since then, the immediate crisis has passed as the labor and management’s second provisional agreement for the labor union, which was prepared for the second time on the 18th, was passed with 54.1% of the votes in favor of the union members.
However, related industries expect it to take some time to recover from production losses this year.
In particular, GM Korea’s management of Korea proposed a proposal to change the wage negotiation cycle originally proposed in this labor union from one year to two years, and then withdrew it, raising concerns that the labor-management conflict could reappear next year.
If the labor-management conflict arises again, the investment plan worth $190 million (approximately 210 billion won) to the Bupyeong Plant 1 from next year, as promised by the management, could be disrupted.
Earlier, when the labor-management conflict reached its peak in early November, GM Korea announced that it would completely withhold such investment plans, and was on the verge of insolvency.
Also, at the time of voting for and against the first provisional agreement, 43.8% of the union members voted no. Among them, the Bupyeong plant, which has the largest member size, had the lowest approval rate at 38.4%. There is a high possibility that next year’s wage negotiations will also face difficulties.
A GM Korea official said, “I am confident that we will continue to carry out the business normalization plan and start a stronger new year.”
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