According to the industry officials, the GM Korea union is having to face growing pressure for conceding to management and making the required sacrifices as a senior executive from the GM headquarters has warned that the unit might lose production orders if the unionized workers continued to strike.
The union has also been urged to avoid launching a full-scale walkout after the most influential automotive union of the country, Hyundai Motor union reached an agreement with their management over wages in their first strike-free agreement in 8 years.
According to the GM Korea as well as the industry officials, The Senior Vice President of General Motors International Operations, Julian Blissett told the company officials that the headquarters shall have no choice but assigning vehicles to the plants in other countries in case the union continued with its strikes that were causing setbacks in the production.
Blissett said that the General Motors management was very disappointed at the union strikes of GM Korea and was keeping a close watch on this situation. He said that the strikes would only result in losses for them. He personally visited Korea last month for encouraging the employees.
The GM Korea union has also been engaging in some partial strikes and is planning to launch a 3-day all-out strike starting next Monday and demanding a 5.7 per cent rise and also other incentives that are worth 17 million won (14,000 dollars) per person. The management of GM Korea is refusing these demands saying that the accumulated net losses of the company over the past five years are standing at 4.45 trillion won.