GM Korea union faces growing pressure
The GM Korea union is facing growing pressure to concede to management and make “necessary” sacrifices as a senior executive from GM headquarters warned that the unit could lose production orders if unionized workers continue to strike, according to industry officials, Wednesday.
The union is also being urged to refrain from launching a full-scale walkout after the country’s most influential automotive union — Hyundai Motor union — reached an agreement with management over wages in its first strike-free agreement in eight years.
According to GM Korea and industry officials, General Motors International Operations Senior Vice President Julian Blissett told company officials that the headquarters will have no choice but to assign vehicles to plants in other countries if the union continues its strikes that are causing setbacks in production.
“General Motors management is very disappointed at GM Korea union’s strikes and is keeping a close watch on the situation,” Blissett was quoted as saying. “The strikes will only result in losses for GM Korea.” Blissett visited Korea last month to encourage employees.
The GM Korea union has been engaging in partial strikes and plans to launch a three-day all-out strike from next Monday, demanding a 5.7 percent rise and other incentives worth 17 million won ($14,000) per person. GM Korea management is refusing their demands saying the company’s accumulated net losses over the past five years stands at 4.45 trillion won.
GM Korea said Blissett’s remarks were “a general mention of the company’s situation,” but industry officials said they bear extra significance because it was the first time that the headquarters mentioned reducing GM Korea’s output since it announced in May last year that it would maintain the output and facility for the next 10 years.
“The GM Korea union will likely be deflated as the headquarters said that it may tap into the unit’s output, which would trigger large-scale restructuring,” an industry official said. “Hyundai Motor union’s strikefree wage agreement is also pressure on the union.”
On Tuesday, 56.4 percent of the more than 43,000 Hyundai Motor union members approved a wage and collective bargaining agreement suggested by the management.
The Hyundai union said that it took into consideration the slowdown in the global automobile industry, economic uncertainties from the U.S.-China trade war and the trade tension between Korea and Japan. “Hyundai Motor union’s influence among domestic automaker unions is absolute,” the official said. “Its affiliate Kia Motors tends to follow the result of Hyundai Motor union’s wage negotiations, and others also take Hyundai Motor’s case as a precedent.”
Prime Minister Lee Nak-yon praised Hyundai Motor management and the union Tuesday for not staging a strike, saying it was “a mature decision.”
“Kia Motors, GM Korea and a number of other companies are holding wage negotiations and I ask them to think of the severity of economic conditions and make a wise decision,” Lee said.