Korea GM Reaches 2020 Wage Negotiation Agreement... 2nd Tentative Proposal '54.1% Approval Rate'

'Withdrawal of Compensation Lawsuit and Expanded Vehicle Discount Rate' Second Revised Provisional Agreement Passed

[Image source=Yonhap News]

[Asia Economy Reporter Kim Ji-hee] The labor and management of Korea GM have concluded the conflict that lasted over five months this year regarding wages and collective bargaining agreements (CBA).

Korea GM announced on the 18th that the second tentative agreement reached at the 26th main negotiation session on the 10th was approved through a union member vote. In the two-day vote starting from the 17th, 3,948 out of 7,304 total union members voted in favor, recording an approval rate of 54.1%. Meanwhile, 3,196 voted against, and 160 ballots were invalid.

This vote showed a similar pattern to the previously rejected first tentative agreement, with low approval rates at the Bupyeong plant and the Maintenance Parts Branch. While the Changwon plant's approval rate reached 68.3%, the Bupyeong plant (49.4%) and the Maintenance Parts Branch (49.2%) fell short of 50%. In the second tentative agreement, issues such as the allocation of new cars to Bupyeong Plant 2 and opposition to the consolidation of the Changwon and Jeju parts logistics centers remained unresolved, leading to more than half voting against.

The second tentative agreement included a clause where the management would withdraw the damages lawsuit filed against the union. Additionally, the discount rate applied when employees purchase Korea GM vehicles was increased by 2% compared to before. Other contents from the previous tentative agreement were mostly maintained, including a total payment of 4 million KRW per union member, consisting of a performance bonus of 3 million KRW and a COVID-19 crisis relief bonus of 1 million KRW.

With this year's CBA effectively settled after the first meeting on July 22, Korea GM has been relieved. Although Korea GM aimed to make this year the first year of business normalization, it faced difficulties due to the COVID-19 crisis in the first half and recent production losses caused by strikes. Despite the significant damage from labor-management conflicts, the successful conclusion of the CBA within the year is expected to gradually stabilize domestic sales and exports.

A Korea GM official said, "We are pleased to be able to finalize the 2020 CBA within the year," adding, "We are confident that we will continue to carry out the business normalization plan and start a stronger new year."

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