View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 26, 2020

GM Korea agrees pay freeze with unions

GM Korea has reached a provisional agreement with its labour union on their long standing dispute over wages for 2019, according to local reporting citing a company spokesman.

By Olly Wehring

GM Korea has reached a provisional agreement with its labour union on their long standing dispute over wages for 2019, according to local reporting citing a company spokesman.

The negotiations for wages, bonuses and incentives began in July last year and escalated into strike action in the following months after the two parties failed to reach any form of consensus.

Earlier this week union representatives agreed to a freeze on basic wages and all bonuses, according to General Motors' South Korean subsidiary, having accepted the automaker could not afford any increase in costs in the current economic environment.

The agreement is subject to a union member ballot to be held early next week.

GM Korea's only concession was to offer so-called 'incentive vouchers' to employees wishing to buy a new GM vehicle effectively discounts for buying its vehicles of between KRW1m and KRW3m (US$800-$2,400) depending on the model.

Talks are set to continue between the two sides about action GM management intends to take against employees who engaged in unauthorised strikes last year.

GM Korea's domestic sales and exports combined fell by almost 32% to 48,610 units in the first two months of 2020 from already weak year earlier sales of 71,423 units.

Virus causes South Korean automakers' sales to tank in February

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto