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July 23, 2021

GM Korea agrees wage increase with union

GM's Korean unit has settled a pay deal with workers.

By Graeme Roberts

GM Korea has reached a tentative wage agreement with its labour union, according to local reports citing a company spokesman.

The agreement came a day after union workers staged a partial strike at the automaker’s three vehicle assembly plants in the country, two in Bupyeong – near Seoul, and one in Changwon on the south coast.

The plants have combined annual production capacity of 630,000 vehicles while GM Korea’s global sales declined by 7% to 154,783 units in the first half of 2021.

The compromise was reached after a reported 13 rounds of wage negotiations since May and included a KRW30,000 (US$26) rise in the monthly basic pay and a one-off bonus of KRW4.5m (US$3,910).

The union had been demanding a KRW99,000 (US$86) increase in the basic monthly wage and a one-off bonus of KRW10m (US$8,695m). It also insisted on being told about future vehicle production plans at the plants.

The wage agreement was subject to a vote by union members.

Hyundai Motor also reached a tentative agreement with unions for a KRW75,000 (US$65) monthly basic pay rise, an annual bonus worth two months’ salary and KRW5.8 in performance-related benefits.

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