The Korean GM union has initiated a partial strike to address wage and collective bargaining agreements, demanding new vehicle assignments and investment plans for future vehicles. They argue that the absence of new models since the Chevrolet Trailblazer has jeopardized Korean GM's future competitiveness.
At a press conference on July 13 in Incheon, An Gyu-baek, head of the Korean GM branch of the National Metal Workers' Union, stated, "While wages are important, securing future vehicle production and assignments is urgent for the sustainability of Korean GM. Investment plans for future vehicles must be presented in this negotiation."
Korean GM has not received new vehicle assignments since the launch of the Chevrolet Trailblazer in 2020, leading to concerns that it is merely serving as a production base. Although a plan for producing plug-in hybrids (PHEVs) was announced for 2024, it was retracted last year due to tariffs in North America.
This year, the GM Technical Center Korea (GMTCK), Korean GM's research and development organization, has reportedly been working on new vehicle development, but details regarding specific models, domestic production, and mass production plans have not been disclosed.
An emphasized, "The current models in production are expected to be discontinued as early as 2029 and as late as 2031-2032, so plans for new vehicle assignments and future vehicle investments must emerge from this negotiation."
He argued that the assignment of new models is directly linked to the survival of partner companies. Furthermore, with enhanced safety regulations, such as the mandatory implementation of automatic emergency braking (AEB) in North America by 2029, a lack of new model assignments could lead to production gaps.
An stated, "The sustainability of Korean GM is not just an issue for our union members but also a matter of survival for second and third-tier suppliers. New vehicle assignments are essential for keeping the factory operational and allowing partner companies to return to normal operations."
Starting today, the Korean GM union has begun a partial strike, refusing early shifts, overtime, and special shifts. They are also halting negotiations across all departments, which could lead to production disruptions, given that the Bupyeong and Changwon plants produced over 270,000 vehicles in the first half of this year while maintaining full operational capacity.
According to the union, the average operating rates for the first half of this year were 91.5% for the Bupyeong plant and 93.6% for the Changwon plant, with 99% of production being exported to the North American market.
Previously, the union secured the right to strike following a decision by the Central Labor Relations Commission to cease mediation on July 6. They are demanding a monthly base salary increase of 149,600 won and a performance bonus of 30 million won, while the company has proposed a monthly base salary increase of 75,000 won and a performance bonus of 10 million won, leaving both sides far apart in their positions. If no agreement is reached in negotiations over the next three days, the union plans to join a nationwide strike organized by the National Metal Workers' Union on July 15.
An remarked, "Korean GM workers' average annual working hours approach 2,200, so a salary increase that reflects the value of labor is necessary. We hope for a smooth negotiation process that leads to an agreement between labor and management."
* This article has been translated by AI.
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