GM’s workers in South Korea announced a partial strike on July 4th, due to disputes regarding production plans and wages.
The annual wage talks started in April, but GM and the labor unions have not managed to reach common ground. Therefore the workers will stage a partial walkout on July 4th. The automaker’s CEO Dan Akerson and other executives are worried about further increases in labor costs, mainly due to ongoing wage lawsuits that were filed by the company’s workers in South Korea.
The labor unions in South Korea says that the ‘cost per vehicle’ in the region is half the one in Australia and lower compared with other peers, such as Russia. The union also opposes the automaker’s decision not to build the next-generation Cruze in the region, sparking worries that the unit might be restructured.
The partial walkout on July 4th will last 6 hours and workers will also refuse weekend and overtime work, according to union spokesman Choi Jong-hak. He added that depending on the discussions’ progress the union will decide whether to continue the strike or not.
“The management did not come up with any concrete proposal during yesterday’s talks. It will be difficult to reach a deal and we are likely to continue the strike,” he told Reuters.