GM, union fail to resume talks
Management of GM Korea failed to resume negotiations with the carmaker’s union members over wages and benefits, Wednesday. The media previously had a positive outlook over a possible meeting between the two sides, but concerns are now being raised over whether the stalemate will extend until the Chuseok holiday.
“The union and management were supposed to meet today, but failed to do so,” said a GM Korea official.
“(GM Korea President and CEO) Kazem was also supposed to participate in the meeting, but we have yet to hear about the reason why the meeting was suspended.”
Both sides previously met 18 times to discuss union members’ wages and benefits only to fail to reach an agreement, but expectations were high this week because new GM Korea President and CEO Kaher Kazem decided to join the talks to narrow the gap between the two sides.
Highlighting a relationship with the carmaker’s union, Kazem met union members last month before he officially took the post on Sept. 1. He then sent an inauguration email to address the company’s need to change for a sustainable future.
Kazem also joined the company’s briefing session Sept. 5 to emphasize the importance of cost reduction and developing new cars, actively engaging with workers.
In response to Kazem’s efforts, militant union workers of GM Korea hinted at a change in their hard-line stance as they agreed to meet the management Wednesday. Industry circles also had a hopeful outlook for the union’s shift in stance, but fears now prevail that the stalemate will be prolonged until mid-October.
On July 24, the union decided to stage a partial walkout after the company refused to meet their demands, and negotiations haven’t been resumed for more than 50 days.
Industry observers said the stalemate will continue through the Chuseok holiday in mid-October especially since the union is also scheduled to have an election for executive members.
During previous negotiations, the union demanded a basic salary raise of 154,883 won, a 500 percent incentive payment, while reducing night shift work by one hour. They also demanded the company pay their salaries even if production is temporarily halted.
GM Korea has emphasized the difficulties it is facing during the previous meetings with workers.
In his inauguration email, Kazem also highlighted the company’s difficulties.
“GM Korea has suffered huge profit losses for the last three years. Its deteriorating financial status is threatening the company’s sustainability,” he said.
“For GM Korea’s sustainable future, we need to change. That’s our duty. I believe in GM Korea and its workers’ potential. If we work together as a team to improve our customer experience, we will be able to overcome ongoing challenges for our sustainable future.”
GM Korea has suffered losses for the past three years. It netted losses of 986.8 billion won in 2015 and 631.5 billion won last year.