GM Korea Union Approves Wage Deal With 56% of Vote

Unionized workers at GM Korea Friday approved a new wage package reached in a tentative agreement three days earlier.

A company spokesman tells WardsAuto the proposal was approved by 56% of the more than 12,000 union members who voted. GM Korea’s unionized workforce totals 16,000.

The new deal calls for an 80,000 won ($73) average monthly wage increase, a lump-sum 6.5 million won ($6,000) incentive bonus payable when the new contract is signed and a 4.5 million won ($4,100) performance-based bonus payable at year’s end.

“Having wrapped up an agreement before the Chuseok holiday, GM Korea is fully focused on strengthening domestic sales of its popular Chevrolet lineup, including the next Spark, the all-new Malibu and the Camaro SS,” the automaker says in a statement.

“In the rest of 2016, the company will continue to endeavor to set a new annual sales record with its market-leading products and mutual cooperation with the labor union.”

The two sides also agreed to set up a steering committee which will oversee replacement of the current 9-hour afternoon-shift schedule with a new system of two 8-hour shifts, as well as conversion of the present hourly pay system to a salary-based system.

The new scheduling and salary systems take effect June 1, 2018, if management-union agreement is reached by third-quarter 2017 on wage amounts, production volumes and production capacity.

Talks began April 26, with 30 negotiating rounds held until the tentative deal was reached Tuesday.

Beginning Aug. 11, the union began holding partial strikes of two to four hours per shift. The strikes were held on 14 separate days and caused production losses of 15,000 vehicles, a spokesman tells WardsAuto.

GM Korea says August domestic sales dipped 11.1% month-over-month and 8% year-on-year to 12,773 units, although sales were bolstered by a strong performance from the high-volume Spark small car (5,000 units) that is produced at the Changwon plant.

Sales of the Malibu, built in Bupyeong, dropped 40% from July to 2,777 units, although it reportedly has back orders for more than 6,000 units.

Meanwhile, Hyundai says a 23rd round of negotiations was held Wednesday Sept. 7.  Talks punctuated by union rejection of a tentative contract last month will not resume until after the weeklong Chuseok holiday that begins next week, sources say.