LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

South Korea union says GM plant closure is 'death sentence', threatens strike

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Wed, Feb 14, 2018
09:34 pm
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

General Motors` workers at a South Korean plant staged a protest on Wednesday against its planned closure, calling the move by the U.S. automaker a "death sentence", and threatening a strike.

In the city of Gunsan, where the factory with 2,000 workers is, shuttered store fronts and empty streets near the plant are a stark reminder of the depressing impact on the rural town.

The factory had already been running at about 20 percent of capacity over the past three years even before the U.S. carmaker announced the closure.

"Gunsan city worked really hard to rescue GM, buying GM cars produced from the factory. The whole town is now in panic," Park Chung-hi, chairwoman of the Gunsan city council, told Reuters.

Park who also has a GM car said one out of five in Gunsan, including family members of workers at GM`s part suppliers, relies on the U.S. carmaker`s operation there.

GM`s South Korean unit launched a voluntary redundancy scheme for its 16,000 workers in the Asian nation after announcing on Tuesday it will shutter the plant in Gunsan by May and decide within weeks on the fate of the remaining three plants in the country.

Unionised workers at the Gunsan plant wore red headbands saying "Solidarity, Fight" and held leaflets demanding the withdrawal of the closure plan. Some had shaved their heads.

"Let`s protect our right to live on our own," Kim Jae-hong, the leader of the workers` union at the Gunsan branch, said amid tears.

GM`s planned revamp of its loss-making South Korea operations is the latest in a series of steps by the automaker to put profitability and innovation ahead of sales and volume. Since 2015 GM has exited unprofitable markets including Europe, Australia, South Africa and Russia.

It is offering South Korean workers three times their annual base salary, money for college tuition and more than $9,000 towards a new car as part of a redundancy package.

A spokesman of GM Korea, the local unit, said the company would continue discussions with the union and seek their understanding over the closure plan.

But workers were far from placated. The union will establish a detailed plan in protest against the shutdown that may include a strike and holding of a sit-in rally at the headquarters of GM Korea, according to the union`s Gunsan branch.

"We can`t accept this. The company informed us about the closure plan, not asking for our opinion. It was already the end of the discussions," Dang Sung-geun, a senior official at the union of GM Korea, told Reuters by telephone.

"This is like a death sentence notice before the Lunar New Year holidays."

Dang said about 1,200 unionised workers from GM Korea joined the protest at the Gunsan factory, a day before the Asian country begins Lunar New Year holidays. Gunsan is located in the southwest of the country.

U.S. President Donald Trump on Tuesday used GM`s decision to close the plant to launch fresh criticism of the U.S.-South Korea trade agreement.

Trump recently approved tariffs on South Korean washing machines, while South Korea has vowed to take countermeasures through the World Trade Organization (WTO).

South Korea`s trade ministry said it will take a dispute against the United States to the WTO, involving the imposition of high anti-dumping duties on South Korean steel and transformers.WAGES, PRODUCTIVITY IN FOCUS

GM executives have complained about South Korea`s relatively high wages and its strike-prone labour union. But Dang of GM Korea`s union blamed the company for reducing output, saying lower wages were not acceptable.

The automaker`s restructuring plan places South Korean President Moon Jae-in in an uncomfortable spot, as he has pledged more new jobs and job security.

South Korea`s strong labour unions have weighed on the country`s automobile industry, which Moon`s administration views as a challenge, a trade ministry official said.

"The South Korean auto industry`s high cost and low productivity has been a deep-rooted issue, which can`t be fixed overnight, but we will try to resolve this issue by building trust with the unions and the companies," said the official who asked not to identified.

Locals in Gunsan, the small city with population of about 270,000, say the closure will hit the economy hard, putting many out of business.

"The economy of the neighbourhood is all dying," said Kim Heung-sik, a taxi driver whose cousin worked for GM Korea`s subcontractor.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

Solid Fuel Ducted Ramjet successful flight test : How it gives technological edge to DRDO and boosts its long range air-to-air missiles capabilities—EXPLAINED

ITC Share Price: Experts give 'share to buy' tag; predicts up to 25% profit in three months

7th Pay Commission: Central Government Employees' Dearness Allowance (DA) to become 25 pct from April 2021?

EaseMyTrip IPO Review: Issue opens on Monday! 'SUBSCRIBE' say experts; check details like important dates, price band, lot size, many more

JEE Main 2021: RUSH! March registration ends today—Here is how you can apply

Ethanol from sugar will lower dependency on Crude import, create jobs and improve earnings of farmers

Gold Price Outlook: Yellow metal falls by over Rs 11,500 in last six months; may crash much more

Stock Market Outlook: Anil Singhvi reveals Nifty, Bank Nifty support range, says investors should trade keeping volatility in mind

7th Pay Commission Latest News: Central government employees' alert! one mistake could cost you your LTC claim—check report

NEET 2021 exam: Check here the latest update on dates and all you need to know for registration before appearing in the test

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved