GM Korea Labor Union to Vote on Ratifying New Contract This Week
Executive Summary
The tentative union settlement comes as GM Korea’s top executive openly is discussing plans to take share away from sales-leader Hyundai in its home market.
GM Korea’s tentative labor agreement, reached Tuesday and still subject to worker ratification, calls for a basic salary increase of 78,828 won ($75) per month, a 4 million won ($3,800) performance bonus and a 1-time special bonus of 2.5 million won ($2,400), a company spokesman tells Ward’s.
“The company also will pay workers a 0.5 million won ($469) lump sum at the end of the year, when quality targets have been met,” he says.
“The bonuses proposed by management total 7 million won ($6,565).”
The auto maker produces a quarter of the Chevrolet cars sold globally, including all Chevy models sold in Europe.
The union settlement comes as GM Korea CEO and President Michael Grimaldi openly is discussing plans to take share away from sales-leader Hyundai in its own home market.
He also says imported cars steadily are increasing their share of the Korea market but at the expense of other domestic auto makers, not his company.
The labor agreement is subject to ratification votes at all GM Korea plant locations on Wednesday and Thursday.
The tentative settlement was reached with little labor action.
There was one partial strike in the first week in June, when workers laid down their tools during regular shifts, and the union also refused to work overtime.
Labor talks reportedly are progressing at Hyundai, but there is no news from the auto maker on the progress.
