Korea GM Union Begins Vote on Tentative Wage and Welfare Agreement... Passage Outcome in Focus

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The Korean GM labor union is set to hold a vote among its members on the 2020 wage and collective bargaining agreement (wage and labor agreement). The outcome of this vote could influence strike sentiments at other companies, drawing significant attention from the industry.

According to the automotive industry on the 30th, the Korean GM union plans to conduct a member vote on the tentative wage and labor agreement from today until tomorrow (the 1st of next month). The results are expected to be announced after 2 PM on the 1st.

Earlier, after the first meeting on July 22, the labor and management sides announced a tentative agreement on the 25th, about four months later, which includes a total payment of 4 million KRW per member as performance bonuses and encouragement money. The agreement also includes the company's plan to start an investment of 19 million USD (approximately 210 billion KRW) from next year in the Incheon Bupyeong 1 plant. However, the proposal to change the wage negotiation cycle from one year to two years, which was a major point of contention between labor and management, was excluded.

Although the agreement was reached after partial strikes and difficulties, its approval remains uncertain. Previously, in the wage and labor agreement settled in April this year for the previous year, the approval rate barely exceeded the majority with 53.4% of the vote.

This vote is taking place amid a recent wave of strikes in the automotive industry, so its impact could be significant.

Since starting wage and labor negotiations on July 22, the Korean GM union conducted partial strikes for a total of 15 days until the 25th due to disagreements with the company. During the strike period, workers in both the first and second shifts at Korean GM did not work for 4 hours each. Since the 23rd of last month, overtime and special work refusals have also continued. Production losses due to the strike are expected to exceed 20,000 vehicles.

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