Kaher Kazem, President of Korea GM, "Profitability and liquidity worsened by strike... No more production losses allowed"

President Kazem Appeals in Employee Address on 7th
"Losing Trust in Export Markets" Concerns Raised

Labor-Management Negotiations Resume on 8th... No Significant Progress
Union Demands Additional Proposals on Future Development Plans

Korea GM Bupyeong Plant (Photo by Yonhap News)

[Asia Economy Reporter Kim Ji-hee] "The union's strike actions have further deteriorated the profitability and liquidity of Korea GM. Maintaining export volumes is a decisive factor for the company's business normalization. We hope that both labor and management will actively support the completion of this year's wage and collective agreement negotiations without further losses and conflicts."

Kaher Kazem, President of Korea GM, made this appeal in a statement sent to all employees on the 7th. Amid the tense labor-management relations following the rejection of the tentative agreement on wage and collective bargaining, he urged the union for cooperation.

President Kazem emphasized, "It is very concerning that we are gradually losing customers' trust and confidence in the export market due to continuous production losses and uncertainties arising during the labor-management negotiation process." He added, "Korean partner companies, which are directly affected, are earnestly hoping for the company's normalization, and all stakeholders are also urging for business normalization without further production disruptions. We must all work together to restore trust from customers and stakeholders not only in Korea but worldwide."

Korea GM suffered a production loss of 60,000 units in the first half of this year due to the impact of the novel coronavirus disease (COVID-19). Since last month, additional losses of approximately 25,000 units have been incurred due to union strike actions such as refusal of overtime and partial strikes. Furthermore, concerns have grown that the scale of losses could expand as the tentative agreement, prepared after 24 rounds of negotiations, was rejected with a 45.1% approval rate in the union members' vote on the 1st.

For now, Korea GM's labor and management resumed negotiations on the 8th, a week after the tentative agreement was rejected. However, the talks ended without significant progress as both sides reaffirmed their positions and the union requested the submission of additional proposals.

During the 25th negotiation session, which lasted about an hour and a half from 2 p.m. that day, President Kazem expressed disappointment over the rejection of the tentative agreement, saying, "The company’s image has also been damaged, so we need to solve this issue together." He also stated, "The delay in the wage and collective agreement negotiations is not beneficial to anyone," and reportedly urged, "Let's think about the future together."

On the other hand, the union cited anxiety and uncertainty about the future as the core reasons for the rejection, demanding solutions for maintaining appropriate staffing levels and future development prospects. Kim Seong-gap, head of the Korea GM union branch, said, "If the management claims business normalization, the union also needs treatment commensurate with the normalization process," urging the management to submit additional proposals.

After the negotiations that day, the union decided to suspend strike actions such as work stoppages and refusal of overtime and special work through the Central Dispute Countermeasures Committee. Both sides are scheduled to resume negotiations on the 10th.

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