Gwangju City Publishes Investment Agreement and Labor-Management Win-Win Development Agreement for 'Gwangju-type Job'

On the afternoon of the 9th, Lee Yong-seop, Mayor of Gwangju Metropolitan City, announced the "Joint Resolution of Labor, Management, Government, and Civic Groups for the Success of the Gwangju Model Job" with the council members at the '1st Meeting of the Gwangju Labor-Management-Government-Civic Council' held at the construction site office of the Gwangju Global Motors (GGM) complete car factory in the Bitgreen Industrial Complex. Photo by Gwangju Metropolitan City

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] The Gwangju Metropolitan City Labor-Management-Government Council appealed for the prompt return of the local labor sector, which declared the termination of the labor-management win-win development agreement, the foundation of the Gwangju-type job project, to the Gwangju-type job project and the Labor-Management-Government Council.

The Gwangju Labor-Management-Government Council (25 members) held its first meeting of 2020 on the afternoon of the 9th at the construction site office in Bitgreen Industrial Complex, with co-chairs Lee Yong-seop, Mayor of Gwangju Metropolitan City, and council members attending, to discuss urgent issues related to the Gwangju-type job project.

At the meeting, the members shared updates on the construction progress of the Gwangju Global Motors complete car factory, the promotion status of the Gwangju-type job joint welfare program, and plans to commission research for establishing and operating a labor-management win-win model.

In particular, the council discussed follow-up measures in response to the labor sector’s termination of the labor-management win-win development agreement and adopted a resolution appealing for the labor sector’s return to participation in the Gwangju-type job project and for responsible measures from all parties involved.

In the resolution, the city’s Labor-Management-Government Council stated to the labor sector, “On April 2nd, the labor sector declared the termination of the labor-management win-win development agreement, which is the foundation of the project, putting the Gwangju-type job project in its greatest crisis,” and emphasized, “If there are disagreements, the responsible approach is to resolve issues through intense discussions within the official consultative body, the Labor-Management-Government Council.”

It continued, “Currently, not only the Korean economy but also the regional economy is facing unprecedented difficulties due to COVID-19, and many citizens are being pushed out of jobs in an unprecedented crisis,” and said, “We request the labor sector to return to the Labor-Management-Government Council as soon as possible, following the national expectations and the wishes of Gwangju citizens in this unprecedented emergency.”

To Gwangju City, it urged, “As the project’s driving entity and de facto largest shareholder, please demonstrate broad communication leadership with greater responsibility to restore trust between labor and management and ensure the project’s success,” and “Please immediately disclose both the investment agreement signed with Hyundai Motor Company and the labor-management win-win development agreement, which were agreed upon by the Labor-Management-Government Council on January 31, 2019, to ensure the project proceeds more transparently.”

It also requested the establishment of a system and framework that can reflect the labor sector’s win-win demands in the management of Gwangju Global Motors Co., Ltd.

To Hyundai Motor Company, it said, “Please guarantee maximum participation of local companies in the procurement of parts and materials necessary for automobile production and strive for win-win and gap reduction between primary and subcontractors,” and “Please express your will and plans to build solid trust among project stakeholders so that the project can proceed smoothly without unnecessary misunderstandings and conflicts.”

To Gwangju Global Motors Co., Ltd., it urged, “Please expand participation of local companies and hiring of local youth in the construction of the automobile factory and recruitment, and strengthen communication and cooperation with the labor sector and local community.”

Especially, it appealed, “Unlike general corporations prioritizing profit generation, Gwangju Global Motors was born from the spirit of labor-management win-win and the hopes of the entire nation, so please adjust the executives’ salary levels to be appropriate and in line with the win-win spirit of the Gwangju-type job project, where everyone is a worker and employee, and at a level that citizens can sympathize with.”

To civic organizations, it requested, “Please unite the wisdom, strength, and all regional capabilities of citizens to support the success of the Gwangju-type job project based on the spirit of social integration and labor-management win-win.”

The city’s Labor-Management-Government Council stated, “It is time for all project stakeholders to return to their original intentions and devote all efforts to making the Gwangju-type job project a success and nurturing Gwangju Global Motors Co., Ltd. into an innovative global company,” and “We reaffirm our resolution to gather all capabilities so that, with a more humble attitude, based on mutual respect and trust, a sense of mission and responsibility, and through dialogue and compromise, the project can proceed without disruption regardless of any difficulties.”

Meanwhile, Gwangju City, following consultations with Hyundai Motor Company and the resolution of the Labor-Management-Government Council, abruptly disclosed the ‘Complete Car Project Investment Agreement and Labor-Management Win-Win Development Agreement for Regional Economic Revitalization and Sustainable Job Creation’ on the same day.

The labor-management win-win development agreement was attached as a supplementary document to the ‘Complete Car Investment Agreement’ between Gwangju City and Hyundai Motor Company, which was formally approved by the Labor-Management-Government Council on January 30, 2019, and signed the next day, January 31, after numerous investment negotiations with investors since the discussion of the Gwangju-type job project in 2014.

Through consultations of the Labor-Management-Government Council, the labor-management win-win development agreement reflected the final consensus reached with investors on the original four major agendas of the Gwangju-type job project: ‘① Appropriate wages ② Appropriate working hours ③ Labor-management responsible management ④ Improvement of primary-subcontractor relations’ changed to ‘① Appropriate wages ② Appropriate working hours ③ Mutual growth and win-win cooperation ④ Communication and transparent management.’

Mayor Lee Yong-seop said, “It is very regrettable that the Korean Confederation of Trade Unions Gwangju Regional Headquarters declared the termination of the Gwangju-type job agreement on the 2nd, shaking the entire project,” and emphasized, “Gwangju City will do its utmost to succeed in the Gwangju-type job project as a labor-management win-win job project, regardless of any difficulties.”

He added, “In this situation where the labor sector has declared non-participation, we will seek solutions together with citizens on how to make the Gwangju-type job project successful.”