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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] GM Korea is facing escalating labor tensions as it prepares to close all company-owned service centers nationwide in February. The move comes amid declining domestic sales and ongoing conflicts with in-house subcontractors.
According to industry sources on the 25th, the Korean Metal Workers’ Union (KMWU) GM Korea branch recently filed a formal complaint with the Incheon Northern Branch of the Central Regional Employment and Labor Office.
The union stated that “the 2024 wage and collective agreement specifies that employees using company-owned service centers are entitled to a discount rate increase from 15% to 25%.” The union argues that “the company’s unilateral closure of service centers not only prevents employees from receiving these benefits but also constitutes a violation of the collective agreement.”
The union added that it “will continue to take action until the agreed rights and promises are fully honored.”
GM Korea announced its plan to close all direct service centers effective February 15, having first notified the union in November of last year. The union responded immediately, expressing strong opposition.
Meanwhile, GM Korea is also dealing with conflicts involving subcontracted workers. Following the termination of GM Korea’s contract with Woojin Logistics last year and the subsequent closure of the company, approximately 120 affected employees protested. Recently, Woojin Logistics workers reportedly occupied the Sejong logistics center and blocked access for new partner company employees.
In response, GM Korea stated, “Even though we had no legal obligation, we offered permanent employment to subcontractor workers as part of our corporate social responsibility. Positions were offered at the Bupyeong or Changwon production sites with terms equal to or better than previous conditions, but only around 20% (22 workers) accepted the offer.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
