General Motors' woes deepen as most S Korea union members reject labour deal

  • Only about 45% of South Korean labour union members were in favour of an agreement GM reached with negotiators last week.
The GM logo is seen at the General Motors plant in Sao Jose dos Campos, Brazil, January 22, 2019. REUTERS/Roosevelt Cassio/Files (REUTERS)
The GM logo is seen at the General Motors plant in Sao Jose dos Campos, Brazil, January 22, 2019. REUTERS/Roosevelt Cassio/Files

General Motors Co, which has long struggled with labour relations in South Korea, will have to renegotiate a preliminary labour deal after a majority of union members voted against it.

Only about 45% of members were in favour of an agreement reached with union negotiators last week for each member to receive a lump sum payment of 4 million won ($3,615) by early 2021, a union official said on Tuesday.

Also check these Vehicles

Find more Cars
Force Motors Gurkha (HT Auto photo)
Engine Icon2596.0 cc FuelType IconDiesel
₹ 13.59 Lakhs
Compare
View Offers
Mean Metal Motors Azani (HT Auto photo)
UPCOMING
BatteryCapacity Icon120 Kwh Range Icon700 km
₹ 88 - 90 Lakhs
View Details
Force Motors Gurkha 5 Door (HT Auto photo)
UPCOMING
Engine Icon2596 cc FuelType IconDiesel
₹ 16 Lakhs
View Details
Revolt Motors Rv400 (HT Auto photo)
BatteryCapacity Icon3.24 KWh Range Icon150 km
₹ 1.27 - 1.44 Lakhs
Compare
View Offers
Velev Motors Vio (HT Auto photo)
Range Icon70 km/charge
₹52,000
Compare
Tork Motors Kratos (HT Auto photo)
BatteryCapacity Icon4 kWh Range Icon180 km/charge
₹ 1.22 - 1.68 Lakhs
Compare
View Offers

The union stepped up demands this year as wages have been frozen since 2018, when the US automaker received a state-backed rescue package to stay in the country.

GM has rejected employee demands to raise the retirement age by five years to 65 and to build more vehicles at one of its South Korean plants.

Also Read : General Motors walks away from stake in electric vehicle maker Nikola

The two sides have had 24 rounds of negotiations since July and GM's South Korean workers staged two four-hour strikes daily over 14 days last month in protest.

That has cost the automaker about 25,000 vehicles in lost production, according to an official at GM's Korea unit, which comes on top of some 60,000 units lost earlier in the year due to the spread of the novel coronavirus.

This month, the automaker issued its strongest warning yet that the unrest could in the long term drive it out of the country.

First Published Date: 01 Dec 2020, 13:43 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.