Korea GM, 20% Wage Deferral for Team Leaders and Above

For Office Workers, Effective Starting Next Month

[Asia Economy Reporter Kiho Sung] Korea GM has decided to defer 20% of the wages of office workers at the team leader level and above in preparation for the spread of the novel coronavirus infection (COVID-19). This is a follow-up measure following the global headquarters, GM in the United States, deciding to defer 20% of the wages of 69,000 office workers worldwide.

According to Korea GM on the 30th, CEO Kaher Kazem recently notified office workers at the team leader level and above of this decision. The wage deferral measure will be applied starting from next month's salary. The full amount of deferred wages and interest will be paid in a lump sum by the fourth quarter of this year, or at the latest by the first quarter of next year. Additionally, Korea GM has decided to further reduce executives' wages by 5-10% depending on their rank. For executives, the 20% wage deferral and the reduction will be implemented simultaneously.

This decision by Korea GM follows GM's policy. On the 26th (local time), GM announced a uniform deferral of 20% of the monthly wages of 69,000 office workers worldwide. GM plans to use the funds raised through this wage deferral to prepare for COVID-19.

The reason why Korea GM's wage deferral rate is smaller than GM's policy is related to the spread of COVID-19. After the spread of COVID-19, GM in the United States halted operations at its North American plants on the 18th. However, the Korean production lines are mostly operating normally despite COVID-19. According to the Korea Automobile Manufacturers Association, Korea GM's plant operating rate in March is known to be between 80-90%.

A Korea GM official explained, "Although GM has made the decision to defer wages, the application of this depends on the plant operating conditions according to the spread of COVID-19 in each country."

This content was produced with the assistance of AI translation services.