KB News Desk
GM Korea became the first automaker to reach a tentative wage agreement this year, easing immediate strike concerns as labor disputes intensify across South Korea’s auto industry.
The company said Thursday that management and its labor union reached a tentative wage and collective bargaining agreement Wednesday after 17 rounds of negotiations. The proposed deal includes a monthly base salary increase of 92,000 won ($63) and a 15 million won performance bonus.
GM Korea also pledged to make every effort to finalize new vehicle allocation plans by the third quarter of 2027, responding to the union’s demand for a stronger commitment to future production.
Union members will vote on the agreement from Monday to Tuesday. If approved, it will end weeks of labor action, including five partial strikes after earlier negotiations stalled.
While GM Korea has broken this year’s bargaining deadlock, labor tensions continue to mount at Hyundai Motor, Kia and Renault Korea.
Hyundai Motor has yet to reach an agreement after 15 rounds of negotiations. Management’s latest offer includes an 89,000 won monthly wage increase, a performance bonus equal to 350 percent of monthly pay plus 10 million won, and 15 shares of company stock.
The union, however, is demanding a 149,600 won monthly wage increase, a performance bonus equivalent to 30 percent of the company’s net profit and an 800 percent bonus. The two sides also remain divided over nonwage issues, including reinstating dismissed workers and extending the mandatory retirement age.
The union has staged partial strikes since July 13, escalating from two-hour walkouts over three days to four-hour daily strikes beginning Monday. Industry estimates put production losses at about 15,800 vehicles, worth roughly 673 billion won.
The union was scheduled to convene its central strike committee later Thursday to decide whether to escalate industrial action. Without a breakthrough this week, negotiations are expected to be suspended until after the summer holidays.
Labor tensions are also rising at Renault Korea and Kia. Renault Korea’s union recently secured the legal right to strike and was expected to decide later Thursday whether to proceed after another round of talks.
Kia’s union was also scheduled to hold a strike authorization vote the same day.
