After 25 Rounds of Negotiations: GM Korea Finalizes Wage Negotiation in 8 Months | BusinessKorea

Friday, January 19, 2018

After 25 Rounds of Negotiations

GM Korea Finalizes Wage Negotiation in 8 Months

GM Korea CEO Kaher Kazem hopes the company focus on turning our Korean business around and create a sustainable future based on profitability.
GM Korea CEO Kaher Kazem hopes the company focus on turning our Korean business around and create a sustainable future based on profitability.
Seoul, Korea
10 January 2018 - 10:00am
Jung Min-hee

GM Korea Co. has reached an agreement with its workers union on a wage package for the year 2017 in eight months. Its labor and management will also immediately launch discussions for a follow-on wage and collective bargaining agreement and draw a conclusion within February. 

In a vote held for two days from January 8 to 9, 69.2 percent, or 8,534, of 12,340 union members who cast ballots supported the tentative agreement signed by the company and the union last month, said GM Korea on January 9.

GM Korea and its labor union have had 25 rounds of negotiations after the first meeting on May 23 in 2017. The tentative agreement had been reached in the 25th round of negotiations on December 29. Under the agreed terms, GM Korea workers will receive an increase of 50,000 won (US$47) in basic monthly salary, a lump sum bonus payment of 6 million won (US$5,607) and a 4.5 million won (US$4,206) performance bonus. The company and its labor union also agreed to commence wage and collective bargaining negotiations for the year 2018 immediately and finalize them by the end of February. In addition, they will discuss future extension prospects, including the securement of exports and new car products that labor union has been continuously requested so far.

GM Korea President and Chief Executive Kaher Kazem said, “We expect to continue to have difficulties this year. However, we will focus on turning our Korean business around and create a sustainable future based on profitability.”

As GM Korea sealed long-drawn wage negotiations, Hyundai Motor and its smaller affiliate Kia Motors are the only ones that haven’t reached an agreement on wages for 2017 among five domestic automakers.

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