Different Positions for Survival
The GM headquarters (HQ) and GM Korea had a meeting in Detroit on June 11. There, multiple HQ executives criticized GM Korea.
“A total of 40 GM plants in various continents are competing hard for more production orders, and yet production halts have been repeated over and over at GM Korea,” said Vice President Doneen McDowell, who is in charge of labor relations at the company.
“The HQ can make a long-term investment in GM Korea only when it is based on labor-management cooperation,” Executive Vice President of Global Manufacturing Gerald Johnson pointed out, adding, “Unlike in GM USA and Mexico, strikes during wage negotiations are a kind of routine in GM Korea.”
“Both the labor cost and frequency of strikes of GM Korea are much higher than those of GM Mexico, which has been strike-free for 26 years,” said Executive Director Michael Perez in charge of global manufacturing strategy and planning, continuing, “The HQ is losing confidence in GM Korea due to its frequent strikes.”
In response, GM Korea union leaders just reiterated their request for electric vehicle production in South Korea. They mentioned the production as a prerequisite for labor-management cooperation, but this logic is preposterous according to many in the industry.