"Despite Complaints of 250 Billion KRW Production Loss in H1, Korean GM Union Launches Struggle"

Differences in Position on the Issue of Allocating New Car Production Volume at Bupyeong 2 Plant, the 'Top Agenda'

Korea GM Bupyeong Plant (Photo by Yonhap News)

[Asia Economy Reporter Kim Ji-hee] “In the first half of this year alone, there was a production loss of 60,000 units. This amounts to approximately 250 billion KRW. Although there are differences between labor and management, both sides must cooperate for the future.”

Kaher Kazem, President of Korea GM, made this appeal to the labor union during the 19th round of wage and collective bargaining agreement (Wage and Labor Agreement) negotiations held on the 22nd. After more than three months of negotiations without narrowing the gap between the two sides, he once again tried to persuade the union. However, immediately after the negotiations, the union held a Central Dispute Countermeasures Committee meeting and decided to engage in actions such as refusing overtime and special work shifts.

Korea GM had previously presented an additional proposal during the 18th round of negotiations on the 21st. The additional proposal included plans to invest $190 million (approximately 215 billion KRW) in the Bupyeong Plant 1 starting next year, in line with the global vehicle development plan. However, regarding the key issue of securing new vehicle production volume at Bupyeong Plant 2, which is the main topic of this year’s Wage and Labor Agreement, the company only reaffirmed its position to extend the production schedule of the currently produced Trax and Malibu models.

During the 19th round of negotiations, President Kazem emphasized cooperation by referring to the worsened business situation caused by the COVID-19 pandemic this year. In fact, Korea GM’s domestic production performance in the first half of this year was 155,972 units, a decrease of over 70,000 units compared to the same period last year (227,110 units). The company explained that the resulting loss would amount to about 250 billion KRW. Korea GM showed signs of recovery after recording operating losses of 614.8 billion KRW in 2018 and 332.3 billion KRW in 2019. However, with the large-scale production loss reflected in the first half of this year, there are bleak forecasts that it will be difficult to reduce the deficit this year.

However, the union maintains a hardline stance. The union stated, “In the previous negotiations, we talked about going through a three-year restructuring period and now seeking a new direction beyond hostile labor-management relations. However, the company’s proposal is absolutely unacceptable.” At the Dispute Countermeasures Committee meeting held immediately after the negotiations, the union decided to refuse overtime and special work shifts from the 23rd until the next committee meeting. Additionally, on the 23rd, they will hold a Wage and Labor Agreement briefing rally for union members. Workers on the early and late shifts will each refrain from working for four hours to attend the rally. Although the union has postponed a full-scale strike for now, it plans to escalate the level of struggle if the differences continue.

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