The labor-management conflict centered on the GM Korea Sejong service parts logistics center has been wrapped up on the condition of "employment succession" for the dismissed workers. As a result, the Sejong center, which had been halted, is expected to return to normal soon.
On the 6th, the GM Parts Logistics Branch of the Korean Metal Workers' Union said that in a vote on a tentative approach to employment succession, 95 of 96 members voted, with 74 in favor, and the measure passed.
GM Korea switched the subcontractor operating the Sejong center by commission through a bid at the end of last year, replacing the existing Woojin Logistics with Jeongsu Distribution. Until then, a subcontractor newly taking over the Sejong center had hired the existing workers as they were, but Jeongsu Distribution said it could not succeed Woojin Logistics' workforce. Woojin Logistics then shut down and notified workers of their dismissal.
The union demanded that GM Korea, the de facto prime contractor, take the lead in employment succession, but GM Korea maintained it could not intervene in whether a subcontractor succeeds employment. Instead, as part of social responsibility, it proposed "regular hiring" for production jobs at GM Korea's Bupyeong and Changwon plants, but the union rejected it on the grounds that the worksite and duties would change. The union then began a sit-in, and parts deliveries were completely halted.
Then the previous day, GM Korea and the union dramatically reached a "tentative agreement to resolve the pending issues at the Sejong service parts logistics center." The core is for Jeongsu Distribution to sign a subcontract with Gyeongryun (formerly Woojin Logistics). In other words, Woojin Logistics workers will be able to keep working at the Sejong center.
GM Korea decided to recognize the subcontract between Jeongsu Distribution and Gyeongryun. In addition, it agreed to pay consolation money to Woojin Logistics workers equivalent to wages not received during parts of January and February. It also decided to offer an additional application opportunity to Woojin Logistics workers who did not apply for regular positions at GM Korea.
In return, the union will stop all industrial actions, including the sit-in, and cooperate in normalizing operations at the Sejong center. It also agreed to set a workplace peace period through the end of Aug. to expedite the normalization of the Sejong center.