GM workers in South Korea strike over wages

Exclusion of Korean unit from GM’s global plan to produce Cruze compact angers staff

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Seoul: Workers at General Motor’s factories in South Korea went on strike on Thursday demanding an increase in wages and the expansion of the company’s operations in the country, a union spokesman said.

“This partial strike will go on indefinitely until we reach a compromise with the management,” a union spokesman Choi Jong-Hak told AFP.

The 14,000-member union downed tools for six hours demanding a basic monthly salary increase as well as a one-off bonus.

They are also angered by GM’s decision to excluded the South Korean subsidiary from its global plan to produce new Cruze compact cars, sparking speculation among workers that GM may reduce production in this country or withdraw altogether.

At GM Korea’s main plant at Bupyeong City near the western Seoul, some 2,000 workers on strike rallied on the company ground, chanting slogans and waving banners, Choi the union spokesman said.

The union and management have met 15 times since negotiations began on April 23. Last month, almost 80 per cent of the union members voted in favour of the strike.

A GM Korea spokesman said the company would continue efforts to narrow differences with the union. “We want to see this strike end as soon as possible through peaceful negotiations,” he said.

Daily production loss from the six-hour strike is expected to be about 1,800 vehicles, he said.

In order to allay fears over the its future plans in the country, GM in February announced it would invest $8 billion (Dh29.4 billion) in South Korea to build a massive research centre.

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