GM Korea sets March 30 deadline for labor-management wage negotiations

Posted on : 2018-03-15 17:08 KST Modified on : 2019-10-19 20:29 KST
Union likely to ask for a small increase in basic pay and priority in new model commitments
The recent “Tong” newsletter of GM Korea in which the company set a Mar. 30 deadline for negotiations between labor and management.
The recent “Tong” newsletter of GM Korea in which the company set a Mar. 30 deadline for negotiations between labor and management.

GM Korea gave March 30 as a deadline for 2018 labor-management wage negotiations and collective bargaining in “Tong,” a newsletter for its union members. The date’s selection was based on the need to conclude labor-management talks and provide proof of “investment profitability” within the month of March to receive new model assignments from Global GM.

While full-scale discussions with the South Korean government and Korea Development Bank (KDB) are planned only after a roughly two-month-long due diligence inspection, new business models are being used as an excuse for “speed tactics” in labor-management talks.

“Funds are being rapidly exhausted. Our only source for funds is GM [global headquarters,” GM Korea wrote on Mar. 13 in the union member newsletter “Tong.” “And GM is demanding GM Korea’s adoption of a profitable structure as a precondition for funding support.”

“New models and other investment can only be obtained [from

the head office] with proof of a sales and expense structure that can yield a

surplus,” it claimed.

GM Korea sent on to stress that this commitment “urgently needs to be shown with the 2018 wage negotiations and collective bargaining.”

“GM has put the ball in the South Korean government and GM

Korea’s court. All subsequently responsibility falls on us,” it said.

On Feb. 22, GM Korea announced a wage and collective bargaining plan to the company including a wage freeze, no performance-based pay, no promotions in clerical positions, adjustments in commuter bus fares, and availability of lunches for a cost. The union interpreted GM Korea’s emphasis on speed as sending the message to be patient while it goes through the necessary internal procedures, including discussions and processing of the demands.

On Mar. 12, the GM Korea chapter of the Korean Metal Workers’ Union (KMWU) told the company that “bargaining without a final decision on the union’s demands would only add another round without signifying anything.” It also informed the company that its finalized demands would be “sent on Mar. 16 following representative meeting discussions on Mar. 15.”

The union is likely to ask for a small increase in basic pay and priority in new model commitments. KMWU, which belongs to the Korean Confederation of Trade Unions (KCTU) and includes the GM Korea union, set guidelines for a 7.4% base pay increase at an ad hoc representatives’ meeting on Mar. 12, but adopted demands for 5.3% increases in the cases of GM Korea and Hyundai/Kia. The GM Korea union’s final demands are to be decided on the afternoon of Mar. 15 after independent discussions.

By Choi Ha-yan, staff reporter

Please direct questions or comments to [english@hani.co.kr]

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