Seek trade union support for GM Korea trying to move factory workers closed

According to foreign media reports, due to shut down the plant next month, General Motors Korea Co., Ltd. on Wednesday tried to relocate the factory's workers to the company's other production lines in South Korea.

This move appears to be the company’s last minute effort to seek trade union support for its radical self-help projects. Universal warned that unless the union accepts the company's restructuring measures, including the closure of the Gunsan factory at the end of May, GM will place General Korea under the protection of the court.

A spokesman for GM Korea Motors stated on the phone that in the ninth salary negotiations held at the Fuping plant in the west of Seoul, the company proposed that the remaining 680 workers at Gunsan Factory be gradually relocated to three factories in Fuping and Changwon. However, the company did not provide the number of workers relocated to other areas and any relocation schedule.

As part of the staff could not be relocated, GM also provided voluntary retirement plans for Gunsan workers. About 1,300 employees of the Gunsan Plant applied for a retirement plan and withdrew from the company according to the dismissal terms. After GM accelerated its reorganization of the Korean branch, which has been losing money, GM Korea has a total of more than 2,600 employees applying for a voluntary retirement plan. A general spokesman said that if the rest of the workers at the Gunsan Factory are not included in the relocation plan, they will be forced to leave without pay. General Korea also asked for help from all shareholders, including Korea Development Bank. In addition, GM also tried to gain support from trade unions in freezing wages and canceling related benefits.

The union said it is preparing to respond to the company’s offer.