GM Korea Hit by Intermittent Labor Walkouts

Workers at General Motors Co.'s four assembly plants in South Korea have been staging daily mini-strikes of three to 10 hours over the past week to protest the company's unwillingness to grant their contract demands.

In talks that began in April, GM and the Korean Metal Worker's union have been unable to agree on wage increases, bonuses or the implementation of a new production schedule that would reduce workers' hours. Bargaining continued this week.

The union demands that the company reverse its decision to end Korean production of the Chevrolet Cruze compact sedan next year. Workers also want GM's commitment to build the next generation of the Chevy Aveo subcompact car in the country.

Union fears of job losses continue despite the company's pledge in February to invest $7.3 billion in Korea over the next five years and make next-generation versions of six models there. GM said earlier this week that it would increase output of the Mokka small SUV there.

Last year the company's Korea workers walked out from July to September, resulting in lost output of 40,000 vehicles. The impact rippled across GM worldwide because the unit exports 80% of its output, which includes kits for car assembly in China and 40% of the Chevy vehicles sold worldwide.