GM Korea has proposed to the union that it will form a "high-tech center" organization to support about 380 partner service centers nationwide ahead of the closure of its company-run service centers on the 15th, it was confirmed. But the GM Korea chapter of the Korean Metal Workers' Union (the union) is strongly objecting, saying this alone cannot replace the role of the company-run centers and amounts to nothing more than an effort by management to take credit, suggesting a rocky road ahead.

According to the auto industry on the 3rd, GM Korea shared an operational plan for a tentative high-tech center with the union at the second meeting of the "special labor-management council working group" on the 2nd.

This center is a dedicated organization that manages about 380 partner centers nationwide by dividing them into three regions: ▲Seoul, Gyeonggi, and Gangwon ▲Chungcheong and Jeolla ▲Gyeongsang. The plan is for skilled technical staff from the existing company-run centers to provide support for high-difficulty tasks and regular training at the partner centers. It will be formed with a total of 38 people, including office staff.

On the 28th last month, Chevrolet owners stage a "vehicle drop-off protest" in front of the Incheon Chevrolet company-run service center in Bupyeong-gu, Incheon, opposing GM Korea's plan to close company-run service centers./Courtesy of Yonhap News

GM Korea's move to organize a high-tech center is a step taken in consideration of concerns about a potential "service gap" that could arise from the closure of nine company-run centers nationwide on the 15th.

GM Korea sees the deficits from operating the company-run centers as severe and believes closure is inevitable for efficiency. Instead, it plans to maintain the partner centers' service level on par with that of the company-run centers through the high-tech center, minimizing customer anxiety.

However, the union believes the high-tech center alone cannot fill the void left by the company-run centers. A union official said, "With only about 10 people assigned to each region, it's impossible to handle recalls due to manufacturing and design defects and precision, high-risk work that the company-run centers were responsible for," adding, "It's merely an attempt to take credit to wrap up the union's struggle, and from the workers' standpoint it's an unacceptable plan."

The current workforce at the company-run centers is about 450 people. GM Korea plans to reassign them to facilities such as the Bupyeong and Changwon plants once the company-run centers are closed, but the specific duties they will take on have not yet been disclosed. If the high-tech center is launched, some of them are expected to work at each regional organization. The union, however, maintains that forced relocation to places other than the company-run centers is effectively the same as dismissal.

Because operating an organization like the high-tech center is a management decision belonging to the company, the union cannot block it. However, if the two sides fail to narrow their differences, it will be difficult for the high-tech center to fulfill its role.

For now, staff must be pulled from the company-run centers to work at the high-tech center, but with the union saying it will continue its struggle, the targeted employees may refuse to work. The union is reportedly planning to propose that, instead of closing all company-run centers nationwide, the company scale back only some of them.

With the launch of the high-tech center as a turning point, wage and collective bargaining set to start in Mar. could become even more tangled. A union official said, "Saying you will create a high-tech center ultimately means you will push ahead with closing the company-run centers," adding, "The Mar. wage talks could turn into a struggle, throwing labor-management relations into disarray."

Another variable is that the union filed for an injunction on the 26th of last month with the Incheon District Court to block the closure of the company-run centers. Depending on the outcome of the injunction, the closure could be halted, in which case the launch of the high-tech center would inevitably become difficult. A GM Korea official said, "We will continue to consult with the union under various plans, including the establishment of the high-tech center."

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