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GM Korea offers to relocate Gunsan workers to other plants

By Yonhap

Published : April 18, 2018 - 17:35

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GM Korea Co., the South Korean unit of General Motors Co., on Wednesday offered to relocate workers at the Gunsan plant due to be closed next month to other production lines in the country.

The move appears to be part of the company's last-minute efforts to seek support from its union over its drastic self-help programs. The US auto giant warned it will be forced to put GM Korea under court protection unless the union accepts the restructuring measures that include the shutdown of the Gunsan plant, 270 kilometers south of Seoul, by the end of May.

In the ninth wage negotiations held at the carmaker's main plant in Bupyeong, just west of Seoul, GM Korea proposed the gradual relocation of a certain number of the remaining 680 workers at the Gunsan to three plants in Bupyeong and Changwon, a company spokesman said over the phone.

(Yonhap) (Yonhap)

But the company didn't give the number of workers who can be transferred to other parts of the country or provide any timeframe for the relocation.

GM Korea has also offered a voluntary retirement package for Gunsan workers as most of them cannot be relocated. About 1,300 Gunsan plant workers filed for the previous retirement program and quit the company under a severance package.

In total, over 2,600 GM Korea workers have filed for a voluntary retirement program as the carmaker has stepped up the restructuring of its loss-making Korean operations. It has asked for financial support from all stakeholders, including the state-run Korea Development Bank, the second-biggest shareholder. It has sought cooperation from the union on a wage freeze, the non-payment of bonuses and suspension of certain benefits.

If the remaining Gunsan plant workers are not included in the relocation program, they are put on unpaid leave, the spokesman said.

The union said it is preparing its response to the company's offers.(Yonhap)