Korea GM Partner Company "No More Production Disruptions, Survival at Risk"... Urging Resolution of Labor-Management Negotiations

Picket Protest in Front of Bupyeong Factory on the 19th... Plea of "Facing Bankruptcy"

[Asia Economy Reporter Kim Ji-hee] As Korea GM suffers from a strike, its partner companies have repeatedly urged the prompt resolution of the wage and collective bargaining agreement (wage and labor agreement), saying "any further production disruptions would be fatal to survival."

About 100 executives and employees belonging to Hyupsinhwe, a group of Korea GM partner companies, held a rally for about two hours from 6:30 a.m. on the 19th in front of the Incheon Bupyeong plant, appealing, "If production is disrupted any further, partner companies with weak liquidity will fall into an irreversible crisis, and serious disruptions will occur in Korea GM's parts supply chain."

Since the 30th of last month, Korea GM has experienced production disruptions of about 17,000 units due to the union's partial strike and refusal of overtime and special work. As the union extends the strike and refusal of overtime and special work until the 20th, this figure is expected to exceed 20,000 units. According to Hyupsinhwe, if the partial strike continues until the end of this month, a loss of 51% compared to the target will occur, and the total loss is estimated to reach 22,300 units. In the first half of this year alone, Korea GM already suffered production disruptions of about 60,000 units due to the COVID-19 pandemic, making it difficult to bear any further losses.

In an appeal, Hyupsinhwe said, "We started this year with hope with the launch of the Trailblazer, but that hope was cruelly shattered by the unexpected COVID-19," adding, "We expected production to increase in the second half of the year as we overcame the difficulties, but the wage and labor agreement has caused massive disruptions in production."

They continued, "If the wage and labor agreement is not immediately resolved, partner companies with weak liquidity may face bankruptcy," and "Even now, partner companies are unable to pay electricity bills and employee salaries on time, and the number of second- and third-tier partner companies giving up their businesses and returning them is increasing," conveying their difficulties.

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