The labor and management of GM Korea finally reached an agreement over their months-long row on restructuring plans.
With this breakthrough, the company can avoid the worst case scenario of filing for court receivership... for now.
Kim Mok-yeon gets us up to speed with the developments.
General Motors Korea has managed to avoid filing for bankrupty... for now.
Labor and management at the local unit of the U.S. carmaker tentatively agreed Monday on restructuring plans... following a months-long row.
"I want to thank both sides for going through the negotiations. Especially the labor union for making a tough decision for the company despite having to bear with the pain of saying good bye to their fellow workers. The company should never forget the great concession made by its laborers."
After a 14th round of negotiations, which began at 5 a.m. on Monday, the two sides reached a tentative understanding on major issues such as the fate of 680 workers at GM's plant in Gunsan, in Gyeongsangbuk-do Province, which will be shut down next month.
The firm had initially offered the workers a four-year leave without pay as one of the options. This proposal was scrapped, as the labor union said it was no different from a lay-off.
Under the latest agreement, the workers in question will be given the choice of voluntary resignation or relocation to other GM factories in Korea, such as the one in Incheon, west of Seoul, and the one in Changwon, in Gyeongsangnam-do Province.
The company vowed to continue negotiations for workers who don't choose either of the options.. and to form a special committee to discuss ways to normalize its management together with the labor union.
Following the announcement, GM's executive vice president Barry Engle thanked the labor union and announced that the automaker will allocate production of two important new models of sport-utility vehicles to local factories to help stabilize their operations.
The latest settlement seems to be welcomed by many, as the meeting with the board of directors previously set for Monday evening, where the firm planned to file a court receivership is now cancelled,.. opening brighter possibilities for the carmaker to sustain its business in Korea.
Kim Mok-yeon, Arirang News.
