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GM Korea Offers Workers Buyout Package
General Motors Co. is offering to pay its workers in South Korea who are willing to quit three times their annual wage, $9,000 toward a new car and as much as $12,300 for college tuition.
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General Motors Co. is offering to pay its workers in South Korea who are willing to quit three times their annual wage, $9,000 toward a new car and as much as $12,300 for college tuition.
Reuters cites internal documents that indicate the offer will end on March 2. A source tells the news service that GM shed about 150 workers last year under a similar program.
GM cautions employees not to expect a richer exit package later. The company notes its Korean operations lost 3 trillion won ($2.8 billion) over the past four years as demand fell and wages rose.
GM says the $375 million plan will be part of an $850 million restructuring charge for the unit. Last week the company announced it will close its assembly plant in Gunsan in May, prompting protests by workers and the threat of a strike.
GM is expected to decide within a few weeks the future of its remaining three car and powertrain factories in Korea.
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