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GM Workers in Korea Vote to Strike
Union workers at GM Korea have voted to strike for the fourth consecutive year, this time over demands that General Motors Co. modify its 60-year-old wage structure, Reuters reports.
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Union workers at GM Korea have voted to strike for the fourth consecutive year, this time over demands that General Motors Co. modify its 60-year-old wage structure, Reuters reports.
Workers want GM to comply with a Korean supreme court ruling late last year that says employers should include fixed bonuses as part of base wages. Doing so would increase overtime and severance pay calculations, which are indexed to a worker's wage rate. Employers say the change could boost labor costs.
GM workers also want the company to hike output in Korea to offset lost production of Chevrolet small cars for the European market. GM plans to phase out the Chevy brand in that region by the end of 2015.
GM is not alone in the debate about wage structure. Reuters notes that similar talks with workers are under way at Hyundai and Renault.
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