Mexican Media Brands
GM Korea Averts Bankruptcy with Tentative Labor Deal
General Motors Co.’s South Korean unit reached a provisional deal with its unionized workers over the weekend, thus averting a bankruptcy filing today.
#economics #labor #workforcedevelopment
Share
General Motors Co.’s South Korean unit reached a provisional deal with its unionized workers over the weekend, thus averting a bankruptcy filing today.
Details weren’t released. But Bloomberg News reports the two sides agreed to another round of buyouts for workers at the factory in Gunsan that GM Korea intends to close next month. About 1,300 of the 2,000 workers there have already accepted voluntary retirement packages.
A union source tells Bloomberg that workers also wanted job security and objected to executive perks such as company-provided cars.
The tentative agreement clears the way for state-owned Korea Development Bank to move ahead with financial aid. KDB owns 17% of GM Korea and has indicated it will provide short-term loans worth 500 billion won ($469 million), or about 17% of roughly $2.8 billion GM has pledged in plant upgrades and new products to revive the carmaker.
GM also has proposed a $2.7 billion debt-for-equity swap. GM Korea said earlier it needs 500 billion won to meet a loan payment to its parent by the end of April. The company has lost 3 trillion won ($2.8 billion) over the past four years, due largely to slumping demand for its vehicles.
RELATED CONTENT
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.