The Korea Times

GM Korea union faces growing pressure

- By Nam Hyun-woo namhw@koreatimes.co.kr

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.

 ?? AP-Yonhap ?? Former U.S. Secretary of Defense Jim Mattis listens to a question during his appearance at the Council on Foreign Relations in New York, Tuesday.
AP-Yonhap Former U.S. Secretary of Defense Jim Mattis listens to a question during his appearance at the Council on Foreign Relations in New York, Tuesday.
 ?? Courtesy of GM Korea ?? General Motors Internatio­nal Operations Senior Vice President Julian Blissett
Courtesy of GM Korea General Motors Internatio­nal Operations Senior Vice President Julian Blissett
 ?? Yonhap ?? GM Korea union leader Lim Han-taek
Yonhap GM Korea union leader Lim Han-taek

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