Mexican Media Brands
GM Korea Bailout Talks Stall Over Labor Cuts
GM Korea and its unionized workers failed to reach agreement on Thursday about concessions, making a bankruptcy filing on Friday more likely.
#economics #workforcedevelopment #labor
Share
GM Korea and its unionized workers failed to reach agreement on Thursday about concessions, making it more likely the company will follow through with its threat to file for bankruptcy on Friday.
GM Korea says the two sides have “not been able to narrow differences” about how to reduce production costs and relocate workers at the factory GM plans to close in Gunsan in May. The company says no talks have been scheduled for Friday.
A source tells Reuters that GM Korea’s board plans to hold a meeting Friday night to discuss a bankruptcy filing. The source notes that a bailout is still possible even if the filing takes place.
The Korea Development Bank, which owns 17% of GM Korea, said earlier this week it might agree by April 27 to provide some 500 billion won ($469 million) in aid. GM has pledged to invest $2.8 billion to revive the Korean business, but only if KDB and labor unions contribute.
RELATED CONTENT
-
Ford May Cut Global Workforce by 10%
Ford Motor Co. plans to reduce its global headcount by about 10%, or 20,000 employees, sources tell The Wall Street Journal.
-
VW, the Future & the End of “Conventional” Jobs
"In order to become a global provider of sustainable mobility, we are pressing ahead with future projects such as electromobility, digital connectivity and new mobility services, equipped with the necessary resolve and financing.”
-
Learning Electric
Like OEMs everywhere, Audi is working hard to electrify its offerings, whether this means hybridized or fully electric vehicles.