Korea GM Implements Voluntary Retirement, Offers Two Years’ Salary
Retirement Date Set for March 31
Korea GM has begun accepting applications for voluntary retirement from production workers in its Sales, Service, and Marketing (VSSM) division. This move is seen as part of management efficiency measures in response to sluggish domestic sales. According to industry sources on March 12, Korea GM started receiving voluntary retirement applications from employees in the affected division as of the previous day.
On January 28, Chevrolet owners protested against the closure plan of the GM Korea direct maintenance service center in front of the Chevrolet direct maintenance service center in Bupyeong-gu, Incheon, by staging a "vehicle admission protest". Yonhap News
View original imageThe severance package for voluntary retirement offers up to two years’ worth of annual salary, with an additional 10 million won for early applicants. Furthermore, all voluntary retirees will receive a reemployment support allowance of 10 million won, and those who were scheduled to retire by the end of 2030 will receive an extra 20 million won.
Employees from the direct service centers, whose business operations have recently been confirmed to end, will each be paid a severance allowance of 30 million won. On March 10, following a special labor-management consultation, Korea GM decided to maintain only three out of its nine direct service centers nationwide, keeping those in Daejeon, Jeonju, and Changwon.
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However, fixed-term and dispatch workers, as well as those hired after January 1, 2019, are excluded from this voluntary retirement program. Final approval for voluntary retirees will be confirmed by March 17, and their retirement date will be March 31. A Korea GM representative stated, “Voluntary retirement will be offered only to employees affected by the closure of the direct service centers who wish to participate,” adding, “The program has been prepared to support the voluntary decisions of the employees concerned.”
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