GM Korea Workers Union to Begin Partial Strikes
Executive Summary
A source says there has been no change in the auto maker’s production re-allocation plans, as General Motors International Operations still plans to move both the next-generation Chevrolet Cruze and new Aveo out of Korea.
GM Korea’s labor union president calls for a partial strike of three hours per shift on July 4 to pressure management into accepting the union's demands.
Bargainers for the auto maker issued a proposal for the first time during a 15th round of negotiations held June 26.
A knowledgeable source tells WardsAuto there was nothing substantive in the proposal and that it merely acknowledged union demands and noted management would consider them and try to respond positively.
“There was absolutely nothing significant about wage demands or improved working conditions,” the source says. “The management team said they would take up the union wage increase and bonus demands at some future meeting.”
An official statement issued by the auto maker promises fairness and rationality.
“GM Korea and its labor union have had 15 rounds of negotiations since the kickoff meeting in April,” the statement says. “Despite the labor union’s decision to take strike actions, the company and its labor union are committed to reaching a fair and rational labor agreement based on mutual trust and understanding.”
The source says there has been no change in the auto maker’s production re-allocation plans, as General Motors International Operations still plans to move both the next-generation Chevrolet Cruze and new Aveo out of Korea.
The production re-allocations never have been discussed in the contract negotiations, the source says, adding, “All production-related matters have not changed yet.”
The source says it is likely that GMIO will transfer production of the Opel Mokka from Plant 1 in Bupyeong to a GM facility in Europe, but the Chevrolet Traxx and Buick Encore versions of the Mokka subcompact cross/utility vehicle will remain at Plant 1.
“Management has increased the line speed at Plant 1 to 60 units per hour to meet strong demand for all three vehicles,” he says. The 20% line-speed increase required the auto maker to assign 150 additional workers to Plant 1.
GM Korea hired 75 new workers on a fulltime regular employee basis and has transferred 75 workers to Bupyeong from the Gunsan plant where the current-model Cruze is produced.
“Union president Min Ki can call a strike at any time that the union’s ‘struggle committee’ authorizes him to do it,” the source says.
If management does not respond with a substantive offer after the first partial strike, more will follow, the source says. Conversely, there will be no further need to use the strike option if a positive proposal is made.
The two sides are at odds regarding overtime wage rates and a formula for paying employees for working weekend shifts.
The union also seeks performance bonuses equivalent to three months of salary, a one-time bonus of 6 million won ($5,200) for signing a new contract and an average monthly wage increase of 130,000 won ($113).
Negotiations last year dragged on for 33 sessions from May through August, with several partial strikes. The production loss of at least 50,000 vehicles was the highest ever in strike action against GM Korea.
