GM Korea faces strike crisis with 78% of unionists voted for the strike
GM Korea faces strike crisis with 78% of unionists voted for the strike
  • Kim Min-jee
  • 승인 2018.10.18 12:17
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Labor union concerns for large-scale restructuring

Less than half a year after the decision to provide new funds, GM Korea is facing another strike crisis. The GM Korea branch of the Korean Metal Workers' Union said on Oct. 16 that 78.2 percent of union workers voted in favor of the two-day strike.

The GM Korea Labor Union requested the National Labor Relations Commission to adjust the dispute on Oct. 12, and the result is expected to be around Oct. 22. In May, GM Korea received 7.7 trillion won in funds from the government and the headquarters.

However, the union decided to strike again as the management moved to separate some GM Korea corporations. GM Korea plans to establish a corporation exclusively responsible for R&D of global products and its decision will be made at the shareholders' meeting on Oct. 19.

The GM headquarters is planning to establish the "GM Korea Technical Center" by combining its research and development headquarters at the Bupyeong plant, design center, and Cheongra Research Center by the end of this year. However, the union opposed the plan on the grounds that if the corporation exclusively responsible for R&D is separated, the production sector would inevitably be reduced and large-scale restructuring could take place.

"If a new corporation is established, it will either cut new organizations according to the research and development results or reduce the size of the production line left by the contrary," a union official pointed out.

In response, GM Korea refuted the move by saying that it is aimed at making the development of a global strategic vehicle more efficient. "It will be an important leap forward to make our organization stronger and it will serve as an opportunity to solidify the position of GM Korea," said GM Korea President Kahe Kassem in an e-mail to employees on Oct. 15.

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