GM Korea and union in talks Friday afternoon, seek to ward off bankruptcy
GM Korea and union in talks Friday afternoon, seek to ward off bankruptcy. General Motors’ South Korean unit and its labor union were in a fresh round of wage talks on Friday afternoon, keen to stave off a threat by the U.S. automaker to seek bankruptcy for the loss-making unit.
GM wants wage concessions from the union as well as government funding and incentives to save three factories in the country. One other plant is due to be shut down by May. The Detroit automaker has said the unit, which employs some 16,000 people, is likely to file for bankruptcy if there was no restructuring agreement by Friday. Marathon talks on Thursday failed to reach an agreement. Read more here.
GM Korea preparing to file for court receivership, 300,000 jobs in jeopardy
GM Korea is preparing to file for court receivership later this month due to its ongoing cash flow issues. The move could put hundreds of thousands of local jobs in jeopardy. Lee Seung-jae reports. The automaker’s cash crunch has seen Barry Engles, President of GM International, make six visits to Korea this year alone, which included seven negotiation sessions between GM Korea management and the carmaker’s labor union. More than a dozen meetings were also held with officials from Korea’s political and financial circles in an increasingly desperate bid to resolve the crisis. However, the outcome so far has been the same. With the hardships facing GM Korea showing no signs of easing,… the automaker is now on the verge of filing of bankruptcy. After failing to come to an agreement during their eighth negotiation last week,… GM President Dan Ammann hinted that its Korean unit will file for bankruptcy,… reiterating that the April 20th deadline for the company and its labor union to come to an agreement will not be delayed.