For Now, Korea GM Avoids Strike... Next Week a Turning Point

Decision on Strike to Be Made After Negotiations on the 22nd of This Month

Korea GM Bupyeong Plant (Photo by Yonhap News)

[Asia Economy Reporter Kim Ji-hee] The Korean GM union has temporarily put the strike card on hold. The union was scheduled to decide on whether to strike on the 15th amid difficulties in wage and collective bargaining agreement (wage and labor agreement) negotiations with management, but postponed the deadline by about a week.

According to the industry on the 17th, the Korean GM branch of the Korean Metal Workers' Union held a central dispute countermeasure committee meeting on the 15th and decided to launch a member signature campaign to seek a concrete future outlook and the withdrawal of disciplinary actions against some union members. The decision on whether to go on strike will be made after reviewing the management's proposals during the 18th and 19th wage and labor agreement negotiations scheduled for the 21st and 22nd.

For now, along with the signature campaign, the union has decided to completely reject the global production system audit that management uses to evaluate the manufacturing process. They will also not engage in residual work or early attendance.

Earlier, during the 17th negotiation held on the 15th, the union demanded future plans since the discontinuation of the small sport utility vehicle (SUV) 'Trax' and the mid-size sedan 'Malibu' produced at Bupyeong Plant 2 could lead to factory closure or restructuring. However, management maintained that long-term discussions are necessary for new car allocations. Nevertheless, they presented proposals including extending the production of Malibu and Trax at Bupyeong Plant 2, measures to secure employment for more than 1,600 employees, and comprehensive discussions about the future.

In response, the union stated that it would be difficult to accept management's proposals without concrete plans regarding the future of Bupyeong Plant 2 and demanded the submission of precise manuals. They also urged management to provide all considerations regarding the union's demands in written form.

With the union deciding to wait for management's proposals until next week, Korean GM has avoided an immediate strike. However, since the union plans to strike immediately if management fails to present satisfactory proposals by the 22nd, the conflict remains unresolved.