GM Korea this week offered to relocate some of the remaining workers at its Gunsan vehicle assembly plant to other facilities in the country to gain support of labour unions for its restructuring plan.
The South Korean GM subsidiary is facing an immediate liquidity crisis after years of ballooning losses and is in need of massive recapitalisation and cost cutting.
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With sales at home and overseas continuing to plunge in the first quarter of 2018, GM Korea in February announced plans to close its Gunsan plant by the end of May.
Unionised workers have largely backed the company's productivity proposals, including a wage freeze to 2019, slashed bonuses and cuts in other benefits. But they have so far been resolute in opposing plant closures.
GM hopes that by offering to relocate some of the 680 remaining workers that chose not to accept its redundancy and early retirement offers, unions will finally back its entire restructuring plan. This backing is needed for the parent to inject further funds into the company.
The number of workers GM is prepared to transfer is presumably still open to negotiation. Around 1,300 Gunsan plant workers have already accepted GM's Korea's earlier severance package and a total of 2,600 workers company wide.
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By GlobalDataWorkers not included in the relocation programme will be put on unpaid leave, according to a GM Korea spokesman.
