GM Korea Union Warns of Legal Action Over Decision to Close Directly Managed Service Centers

The labor union of GM Korea has warned that it will take legal action, claiming that the company’s decision to close its directly managed service centers signals a withdrawal from the domestic market.

On November 12, the GM Korea labor union issued a statement under the name of branch chief Ahn Kyubaek, expressing “deep anger and strong condemnation at the company’s notice that, citing the policy of GM headquarters, it will completely shut down its directly managed service centers as of February 15 next year.”

Yonhap News Agency

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Previously, GM Korea informed the union of its plan to end operations at nine directly managed service centers nationwide as of January 1 next year and to provide services through approximately 380 partner centers. Employees working at the directly managed service centers are expected to retain their employment and be reassigned to other positions.

This follows the sales policy announced in May, when the company proposed selling its directly managed service centers and some facilities at the Bupyeong plant in Incheon as a measure to secure financial sustainability.

The union stated, “In the tentative wage agreement, labor and management agreed to revisit the issue of directly managed service centers from scratch through a special committee on employment stability. The notice of closure is a clear violation of the labor-management agreement and evidence that the company engaged in insincere negotiations from the start.”

The union further pointed out, “Last May, GM Korea announced the closure of directly managed service centers and the sale of assets, citing the U.S. government's imposition of tariffs on imported cars. However, even after the tariffs were adjusted to 15%, the company has not stopped restructuring, which shows that tariffs were merely an excuse.”

The union continued, “Shifting core maintenance work to partner companies will weaken quality control and degrade customer service, while imposing excessive burdens and costs on partner companies. Customer complaints resulting from lower maintenance quality will damage the brand image, and this burden will ultimately be passed on to consumers.”

The union held an emergency delegates’ meeting the previous day, established an emergency countermeasures committee to prevent the closure of directly managed service centers, and resolved to take action against the company. The union especially criticized the company for unilaterally issuing the notice ahead of the upcoming union elections, arguing that this was intended to create confusion.

The union warned, “We will never remain silent in the face of the breach of labor-management agreements, election interference, unfair labor practices, or forced restructuring. We will mobilize all possible means-including on-site resistance, legal action, and alliances with political circles-to hold GM fully accountable as a corporation in Korea and ensure it pays the price.”

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