Reuters reported that GM Korea and its union has likely come to a tentative wage concession agreement with the Korean union. The agreement will be put to vote at a union meeting this week. The deal is great news for GM Korea, the union and Korea. Korean unions have a reputation for radicalism and violence, thus, making many potential investors choose other destinations without these same labor relation issues. I have, personally, seen too many of my clients choose other destinations because of these issues.
GM Korea has, generally, successfully navigated these often murky waters, since its acquisition of Daewoo Motors.
The Reuters report notes that:
The agreement came after factory workers at GM Korea staged a series of partial strikes in July and August, and includes a basic salary increase of 80,564 Korean won ($71.23), a bonus of 5 million won and a one-off payment of 3 million won, among others. Regarding the most contentious issue of scrapping overnight work, the two sides agreed to test-run a new shift scheme in the first quarter of 2013 and to decide on the time frame for the new system in the second quarter of that year.
GM Korea is one of the U.S. automaker’s key Asia production bases, producing a quarter of GM’s Chevrolet cars sold globally, and 98 percent of Chevy cars sold in Europe.
- More Damage from Militant Unions & Rising Labor Costs in Korea: GM to Reduce Production in Korea
- Korea’s Minimum Wage Increases to KRW 5,210
- Hyundai Motors on the Fast Track to a 45,000 Employee Strike
- Minimum Wage Raised in Korea for 2020: Employment Law Updates
- Can you Revise Employment Rules in Korea without the Agreement of Employees?
- Ordinary Wages and the Principle of Good Faith in Korea: How long should the principle be applied to Korean CBAs?
- Korean Labour Relations by Tom Coyner
- Choice of Law Issues in Employment Disputes in Korea
- Definition of “Ordinary Wage” in Korea: Korean Employment & Labor Law Basics
- Samsung Investigated for Union Busting by Korean Ministry of Employment and Labor