Union Condemns Korea GM's Decision to Close Changwon Direct Maintenance Center ... "If You Sell Cars, After-Sales Service Is a Must; Where Should Citizens Go?"

As the conflict between labor and management deepens ahead of the closure of Korea GM's directly operated maintenance workshops, workers held a press conference condemning Korea GM at the Changwon Service Center in Gyeongnam.

On January 28, the Changwon Branch of the Korea GM Division of the National Metalworkers' Union and others held a press conference at the Korea GM Changwon Service Center in Seongju-dong, Seongsan-gu, Changwon City, denouncing Korea GM's decision to close its directly operated maintenance workshops.

Immediately after the press conference, as a protest action, they opened the maintenance center and provided free inspection services to GM vehicle customers.

The National Metalworkers' Union Korea GM Branch Changwon Chapter and others held a press conference at the Korea GM Changwon Service Center located in Seongju-dong, Seongsan-gu, Changwon City, condemning Korea GM for deciding to close the directly managed maintenance workshop. Photo by Se-ryeong Lee

The union claimed, "Korea GM received 809 billion won in public funds in 2018, but instead, it is undermining its foundation as a comprehensive automobile company in Korea and is solely focused on preparing to withdraw from the country."

They further criticized, "With the complete closure of directly operated maintenance centers, citizens who require advanced repairs have nowhere to go. We cannot understand how they plan to ensure the safety of citizens."

Kim Eunhyeong, head of the Gyeongnam branch of the Korean Confederation of Trade Unions, said, "Korea GM's decision to completely shut down its maintenance workshops not only threatens workers and partner companies but also customers and consumers. It disregards the commitments made to the Korean government and Korea Development Bank, who invested public funds. This will destroy jobs for Korean workers and result in damages for vehicle customers."

Kim Ilsik, head of the Gyeongnam branch of the Metal Workers' Union, stated, "If you sell cars, it is only natural to provide after-sales service, and ensuring quality through directly operated maintenance facilities is the first step toward developing together with the public. However, the unilateral restructuring Korea GM is undertaking now appears to be only the initial stage of withdrawing from Korea."

Shin Seongbok, head of the Korea GM Changwon Branch of the Metal Workers' Union, commented, "If you sell high value-added vehicles but refuse to provide regular repairs or after-sales service, what customer would buy a GM vehicle? Since public funds have been provided, the government and Korea Development Bank, as the second-largest shareholder of Korea GM, must fulfill their oversight roles."

Vehicles are entering the maintenance center to receive free inspections provided by the Changwon Branch of the Korea Metal Workers' Union GM Korea Branch, protesting the closure of GM Korea's directly managed maintenance shops at the GM Korea Changwon Service Center in Gyeongnam. Photo by Se-ryeong Lee

Last year, Korea GM announced that it would completely close all nine of its directly operated maintenance workshops nationwide by February 15.

The company stated that the sale of assets, including directly operated maintenance workshops, is necessary to secure financial sustainability amid rapidly changing industrial and business environments.

After the closure of the directly operated centers, customer service will be provided mainly through approximately 380 partner service centers nationwide, and existing employees will be reassigned to other roles within Korea GM.

Workers are protesting, arguing that the closure of directly operated maintenance centers goes beyond a simple business restructuring and is highly likely to lead to a typical restructuring model.

They also contend that partner centers alone will find it difficult to handle precision repairs or high-risk tasks arising from manufacturing or design defects.

In response, the Korea GM union has formed an emergency response committee and, on January 26, filed for an injunction with the court to prohibit the closure of the directly operated maintenance workshops.