“Gwangju City, Promptly Implement GGM-Supported Joint Welfare Program”
[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] The worker representatives of the Gwangju Global Motors (GGM) Win-Win Council have urged Gwangju City to promptly implement the joint welfare program supporting GGM.
On the 11th, the worker representatives of the GGM Win-Win Council delivered a statement to Gwangju City demanding a concrete plan for the implementation of the joint welfare program promised to GGM employees.
This follows a request made to Gwangju City on March 23 for effective implementation, which did not include specific measures or schedules.
In the statement, the worker representatives said, “At its launch, Gwangju Global Motors agreed to pay an appropriate average wage of 35 million KRW per employee while guaranteeing social wages through joint welfare programs provided by local governments, thereby increasing actual income. This agreement was formalized in a labor-management win-win development agreement. However, the public welfare programs such as housing and other benefits that Gwangju City promised to support for GGM workers remain at a very minimal level, causing immense disappointment among GGM employees who joined the company trusting the promises made by Gwangju City and the labor-management-government council.”
They added, “When creating jobs, Gwangju City promised social wage benefits of 6 to 7 million KRW per person, but the current direct support through joint welfare programs averages only 1.61 million KRW per person, which is just 4.6% of the annual salary. Gwangju City must prepare and implement practical support measures so that the originally promised social wage benefits directly reach each GGM worker, ensuring the win-win relationship is not undermined.”
Furthermore, they stated, “Although Gwangju City supports housing, education, and transportation costs, education expenses are used for daycare center operations, and transportation costs cover commuting bus operations. The only item paid directly to employees is housing support, which averages only 730,000 KRW per person. Moreover, housing support is limited to a maximum of 2.4 million KRW per eligible employee, with eligibility determined by employee conditions, resulting in a low beneficiary rate and even creating discord among workers, making improvement urgently needed.”
They also noted, “The housing construction around the Sanjeong district announced by Gwangju City in 2021 remains uncertain and lacks concrete plans. Until long-term housing support plans are realized, immediate and effective temporary housing support is urgently needed. Gwangju City should promptly prepare a housing support plan including a detailed blueprint and schedule covering location, type, scale, and ownership to establish stable living conditions.”
The statement emphasized, “The labor-management win-win development agreement is a contract that must be upheld and implemented. It is the foundation and core of Gwangju Global Motors’ launch based on coexistence. If it is not honored, it will lower the motivation and morale of GGM workers, jeopardize coexistence, and ultimately hinder the success and expansion of the Gwangju-type jobs initiative. This will seriously affect Gwangju City’s ability to attract companies and the development of Gwangju’s economy. We urge Gwangju City to now concretely present and implement the schedule for social wage compensation measures such as housing support promised in the agreement.”
The worker representatives concluded, “Our demands are legitimate rights based on the job investment agreement promises, so we ask Gwangju City to promptly clarify its position. If Gwangju City fails to propose realistic measures acceptable and understandable to workers, we will hold them accountable through all legal procedures for breach of contract and dereliction of duty by responsible officials.”
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Meanwhile, the GGM Win-Win Council, the largest consultative body of Gwangju Global Motors, consists of 12 members: six worker representatives and six company representatives. Worker representatives are elected directly by the workers.
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