Korea GM Labor and Management Prepare Second Tentative Agreement on Wage and Working Conditions...

Second Tentative Agreement 9 Days After First Agreement Rejected
Issues Like New Car Allocation at Bupyeong 2 Plant Remain 'Variables'

The Korea GM Bupyeong Plant, which stopped operations due to a full-scale strike by the labor union in September last year (Photo by Korea GM) [Image source=Yonhap News]

[Asia Economy Reporter Kim Ji-hee] The labor and management of Korea GM, which has suffered production losses of more than 23,000 vehicles due to ongoing strikes, have barely reached a second tentative agreement on this year's wage and collective bargaining agreement (wage and collective agreement). Although the new tentative agreement was made just nine days after the first tentative agreement was rejected, key points of conflict remain, making it difficult to be optimistic about a final settlement.

According to Korea GM on the 11th, the labor and management prepared a new tentative agreement through the 26th main negotiation held at the Bupyeong plant in Incheon the day before. This agreement includes the addition that the company will withdraw the damage compensation lawsuits filed against union members. In addition, the employee vehicle purchase discount benefit will be raised from the current 15-21% to 17-23%. While the basic salary freeze remains, the payment timing for the total 4 million KRW, including the performance bonus (3 million KRW) and the COVID-19 crisis overcoming encouragement bonus (1 million KRW), will be partially advanced, maintaining the existing tentative agreement.

The Korea GM union plans to conduct a union member vote on the new tentative agreement as early as the 14th. If a majority of voters approve the tentative agreement in next week’s vote, this year’s wage and collective agreement will be finalized.

However, a settlement within the year remains uncertain. Key issues such as the demand for new car allocation to Bupyeong Plant 2 and opposition to the consolidation of Changwon and Jeju parts logistics centers remain unresolved. During the previous tentative agreement vote, the approval rates of the Bupyeong plant (38.4%) and the Maintenance Parts Branch (40.7%), which are directly affected by these issues, were lower than the overall rate. In particular, the decisive factor for the rejection was the large number of opposing votes from the Bupyeong plant, which accounts for more than half of all union members.

During the negotiations that continued late into the night the day before, the union side continuously expressed concerns about these issues. The union representative emphasized, "We will continue to raise issues regarding the future of Bupyeong Plant 2 in next year’s collective agreement," and added, "The promise to not unilaterally push forward the consolidation of the Changwon and Jeju centers but to negotiate must also be kept."

An industry insider said, "The rejection of the first tentative agreement seems to have been largely influenced by the anxiety over the possibility that Bupyeong Plant 2 might close in two years due to the lack of clear answers about its future operation," adding, "It is uncertain whether the new tentative agreement, which lacks progress on future development and job security, can change the minds of union members who voted against it."

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