GM Factory Workers Plan Partial July 4 Walkout

by William White | June 27, 2013 9:35 am

GeneralMotors185 GM Factory Workers Plan Partial July 4 Walkout[1]General Motors (GM[2]) factory workers in South Korea plan a partial walkout July 4.

The walkout is set against the background of yearly wage talks between the company and its workers. GM argues that the cost of labor would go too high with wage increases, but GM’s South Korea union argues that its production cost[3] is half of Australia’s, according to Reuters.

The strike could be averted if wage talks progress before July 4.

“The management did not come up with any concrete proposal during yesterday’s talks. It will be difficult to reach a deal and we are likely to continue the strike,”¬†Choi Jong-hak, a union spokesman,¬†told Reuters.

GM Korea’s union negotiators want a one-time bonus of 6 million Korean won — roughly $5,300, which is about a quarter of workers annual salary — as well as 130,498 won, or roughly $110.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/07/GeneralMotors185.jpg
  2. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  3. production cost: http://www.reuters.com/article/2013/06/27/us-gm-korea-idUSBRE95Q02O20130627

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