Korea GM Plans Sale of Bupyeong Logistics Center Site…Union Opposes "Restructuring"

[Asia Economy Reporter Suyeon Woo] Korea GM has decided to sell land near the logistics center close to the Incheon Bupyeong plant to resolve liquidity issues caused by the novel coronavirus infection (COVID-19). The labor union is opposing this, calling it part of restructuring.

According to the Korea GM labor union on the 5th, Korea GM recently decided to sell the logistics center land near the Incheon Bupyeong plant and sent a related cooperation letter to the union. It appears to be a measure to secure immediate cash by selling a building and land with an area of 9,900㎡.

Korea GM stated that it plans to resolve short-term liquidity problems caused by COVID-19 through asset sales and invest the secured funds in new vehicles and production facilities.

On the other hand, the labor union is concerned that the sale of the logistics center land could effectively lead to restructuring for about 115 non-regular workers among the approximately 170 employees who worked there. They also opposed the possibility that similar asset sales could continue and expand into restructuring.

In response, Kim Seong-gap, chairman of the Korea GM labor union, sent a reply letter to the management opposing the sale of the logistics center land. Chairman Kim said, "If the company forcibly proceeds with the unilateral sale of the logistics center land, the branch will consider it an act of destroying labor-management relations and will carry out resistance struggles."

The labor union had previously strongly opposed plans to close the Changwon parts logistics center in Gyeongnam and the Jeju parts office to integrate them into the Sejong parts logistics center.

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