The labour union representing workers at General Motors (GM) Korea has voted in favour of strike action at the company's domestic plants over a disagreement on wages, reports Reuters News. The news service said 13,884 union members participated in the vote held yesterday (1 July), and around 71% of them voted in favour of launching strikes this year. Among the demands laid out by the union are a future product development programme for the South Korean unit, including new car model projects, and a basic salary rise. However, the company management and the union have failed to reach an agreement during the last 12 rounds of negotiations, which started on 23 April. The South Korean National Labour Relations Commission is expected to meet the union and the management on 6 July to decide whether to order a 10-day arbitration period.
Significance: GM Korea is currently tackling a decline in vehicle exports as a result of the withdrawal of Chevrolet-brand cars from the European market, to which the South Korean unit was the major supplier. Additionally, the strengthening South Korean won against major foreign currencies has done little to improve the export competitiveness of South Korean OEMs. GM is currently overhauling its vehicle manufacturing operations in Asia, including a recent production cut in Thailand and a reorganisation in Indonesia, amid its withdrawal from Australia. This has triggered unrest among South Korean workers amid a lack of new production plans for the unit, which is evident from recent data. GM Korea averted strike action at its plants last year after it agreed to honour all of its workers' demands, including the controversial inclusion of "fixed bonuses". The labour union says that yesterday's vote was not a definitive statement of intent to hold strike action, and GM Korea says it is looking at reaching "a fair and reasonable labour agreement based on mutual trust and understanding".
