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GM Korea Faces Strike This Week
Unionized employees at General Motors Co.'s South Korean unit say they will walk off the job for the first four days of this week to highlight their demand for a contract that end overnight shifts, the Financial Times reports.
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Unionized employees at General Motors Co.'s South Korean unit say they will walk off the job for the first four days of this week to highlight their demand for a contract that end overnight shifts, the Financial Times reports.
Last month GM Korea workers overwhelmingly rejected a tentative agreement that would have provided a wage hike and $5,750 in bonuses but left the work schedule issue unresolved.
A series of ministrikes since mid-July have already cost the company more than 18,000 units of lost production. GM Korea is a key manufacturing base for the U.S. automaker.
Labor unrest has disrupted output at all major carmakers in Korea during contract talks this summer. Hyundai workers narrowly ratified a new contract last week that will eliminate overnight shifts.
The country's auto production plunged 26% to 237,500 vehicles in August compared with a year earlier, according to the country's Ministry of Knowledge Economy. The government says strikes cost 68,000 vehicles at Hyundai, 40,500 units at Kia and 7,400 units at GM Korea.
Tight inventory contributed to drop in car sales in Korea to 550,200 units last month from 591,900 units in August. 2011.
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