GM Korea, union to meet next year for wage talks

The Korea Times - - BUSINESS -

GM Korea and its la­bor union will meet early next year as their wage ne­go­ti­a­tions col­lapsed this week due to dif­fer­ences over wages, the com­pany said Fri­day.

The com­pany and the union have held 10 rounds of wage talks this year but failed to bridge the gap run­ning deep be­tween them over wages.

The 10,000-mem­ber union de­clared there will be no fur­ther wage ne­go­ti­a­tions with the com­pany this year at the end of the 10th talks held Thurs­day, the union said on its home­page.

As a new lead­er­ship will re­place the cur­rent one in a vote to be held later this year, the com­pany ex­pects to re­sume talks with the new lead­er­ship early next year.

Asked about its of­fi­cial stance about the col­lapsed talks and ex­pec­ta­tions about the halted wage deal, GM K orea said in a text mes­sage: “We will keep ne­go­ti­at­ing with the union. We are com­mit­ted to reach­ing a fair and rea­son­able agree­ment based on mu­tual re­spect and un­der­stand­ing.” The union could not be reached for com­ment.

GM Korea work­ers de­manded a 5.7 per­cent hike in ba­sic monthly salary, one and a half months of wages in per­for­mance-based pay and a cash bonus worth 6.5 mil­lion won ($5,400) per worker, which was re­jected by the com­pany.

The Korean unit of Gen­eral Mo­tors (GM) said it is dif­fi­cult to ac­cept the union’s de­mands due to the wors­en­ing busi­ness en­vi­ron­ment and the fact that the com­pany is still mired in deficits, among other rea­sons.

From Jan­uary to Septem­ber, sales fell 9.5 per­cent to 308,933 ve­hi­cles from 341,349 a year ear­lier.

It posted a net loss of 859 bil­lion won $738 mil­lion) in 2018 af­ter re­port­ing 3.13 tril­lion won in ac­cu­mu­lated net losses in the 2014-2017 pe­riod.

Par­tial and gen­eral strikes held this year re­sulted in about 20,000 ve­hi­cles in pro­duc­tion losses, ac­cord­ing to the union.

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