Korea GM Union to Strike Again Next Week... US Headquarters' Warning and Supplier Appeals Were Ineffective

On This Day, Jjaengdae Committee Decides Partial Strike from March 23 to 25

[Image source=Yonhap News]

[Asia Economy Reporter Kim Ji-hee] The Korean GM union will continue its strike next week. Despite a senior executive from the U.S. GM headquarters hinting at the possibility of withdrawal by stating that production volume could be moved to other countries if the strike continues, the union did not back down and announced another round of struggle.

According to industry sources on the 20th, the Korean GM union held a Central Dispute Countermeasure Committee meeting and decided on a partial strike for three days from the 23rd to the 25th. The strike method remains the same as before, with the first and second shifts striking for four hours each. With this decision, the total strike days by the Korean GM union due to conflicts over this year's wage and collective bargaining agreement (wage and labor agreement) have increased to 15 days since the 30th of last month.

Due to the union's industrial action up to this day, Korean GM has suffered a production loss of about 20,000 vehicles. In particular, Korean GM had planned overtime and special work this month to keep up with the strong North American sales of the new Trailblazer, but the union's refusal to even this has rapidly expanded the scale of damage. If the additionally decided strike proceeds, the production disruption will grow to about 25,000 vehicles.

This partial strike decision is especially notable as it came right after Steve Kiefer, GM's Overseas Business Division President, made remarks in an interview with a foreign media outlet on the 18th that fueled speculation about withdrawal from Korea. Steve said, "The Korean GM union is holding vehicle production hostage and causing significant financial damage," and warned, "If this issue is not resolved within weeks, there will be long-term effects." He also mentioned, "There is also the option of producing in other Asian countries, including China." Industry insiders interpret these remarks as implying the possibility of withdrawal from Korea.

Furthermore, the day before, about 100 executives and employees of partner companies gathered in front of Korean GM headquarters in Bupyeong, Incheon, appealing, "If production disruptions continue, partner companies with weak liquidity will face irreversible crises, and there will be serious disruptions in the Korean GM parts supply chain," but the union did not change its stance.

An industry official pointed out, "The automotive industry as a whole is already facing a significant crisis due to the COVID-19 pandemic, and the union's strike has further increased anxiety," adding, "If the parts supply chain collapses due to this crisis, difficulties may continue not only this year but also next year."

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