Korea GM Union Secures Right to Strike... Central Labor Relations Commission "Suspends Dispute Mediation"

[Asia Economy Reporter Suyeon Woo] The Korean GM labor union, which has been in conflict with management over wage and collective bargaining negotiations, has secured the legal right to strike. Having already obtained over 80% approval in a vote, the Korean GM union is expected to initiate a strike after Chuseok.

On the 24th, the Central Labor Relations Commission decided to suspend mediation regarding the wage and collective agreement dispute between Korean GM labor and management. The suspension of mediation by the commission means that the differences between labor and management are too great to propose a mediation plan. This also means that the union can legally proceed with a strike.

The Korean GM union conducted a strike authorization vote among all union members on the 1st and 2nd, with more than 80% voting in favor. Since July, Korean GM labor and management have attempted 16 rounds of collective bargaining negotiations up to the day before, but both sides have struggled to narrow their differences.

Korea GM Bupyeong Plant / Photo by Yonhap News

The Korean GM union is demanding a base wage increase of 120,304 won and a performance bonus exceeding 20 million won, as well as the allocation of new vehicles to Bupyeong Plant 2, which produces the small sport utility vehicle (SUV) Trax and the mid-size sedan Malibu.

On the other hand, management is resisting, stating that it is difficult to pay performance bonuses as the company has been facing losses for seven consecutive years. Regarding the allocation of new vehicles to Bupyeong Plant 2, management is reported to have expressed a negative stance from the perspective of securing competitiveness for new vehicles.

With the Korean GM union’s successful acquisition of the right to strike on this day, they have taken a step closer to striking. The decision on whether to strike will be made by the Korean GM union’s strike countermeasure committee.

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