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Protesting GM Korea Workers Raid Executive Office
About a dozen South Korean union workers forced their way into General Motors Co.’s executive offices in Incheon yesterday to protest cancelled bonuses, Bloomberg News reports.
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About a dozen South Korean union workers forced their way into General Motors Co.’s executive offices in Incheon yesterday to protest cancelled bonuses, Bloomberg News reports.
A video shows workers ransacking the CEO’s office, removing a desk and kicking and throwing chairs. GM Korea says the group was protesting a decision to cancel worker bonuses due to the unit’s cash crisis. GM Korea has said it needs to raise $600 million in operating funds by the end of April to avert bankruptcy.
Korea’s minister of trade, industry and energy warns that another such labor incident will make it “difficult” for the company to gain public and government support for a turnaround plan.
GM Korea faces a cash call on debt this month. The company describes bankruptcy as inevitable unless it wins concessions from the union and bailout funding from the Korean government. In return, the unit’s U.S. parent has offered to swap $2.7 billion in debt for equity and invest $2.8 billion to update facilities and add new products.
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