GM Korea labor and management agreed to keep three directly run service centers in Daejeon, Jeonju and Changwon instead of closing all nine company-run centers nationwide. They also decided to set up a "High-Tech Center" in Bupyeong, Incheon, to support partner service centers with technology. As many jobs at the directly run centers are being reduced and many employees are being reassigned to production jobs, they will pay consolation money of 10 million won per person to all employees of the directly run centers.
On the 10th, GM Korea labor and management held a special committee on employment stability and agreed to these terms. GM Korea said cumulative losses at the nine directly run centers nationwide were severe and closed them all as of Feb. 15. However, the union continued negotiations with management, saying that if the company-run centers disappear, customer harm is a concern and that the roughly 400 employees who worked there could be assigned to jobs they do not want.
Under the agreement, first, they will establish and operate "maintenance service technology centers" in three regions: Daejeon, Jeonju and Changwon. These centers will handle vehicle maintenance in each region and respond to warranty and recalls. A total of 60 maintenance workers will be assigned, and operations will begin on Apr. 1. Labor and management will consult on operating plans based on a business feasibility assessment one year after the centers open.
In addition, they decided to expand the existing high-tech garage in Bupyeong, Incheon, into a High-Tech Center. Its role is to support or transfer technology to some 380 partner service centers nationwide, provide maintenance technology training for vehicles sold in the domestic market, and respond to high-difficulty maintenance cases. It will also begin operations on Apr. 1, with 20 people assigned, including at least 10 maintenance workers.
GM Korea will pay consolation money of 10 million won per person to employees who worked at the directly run centers in connection with the end of their operations. Employees not assigned to the maintenance service technology centers or the High-Tech Center will be reassigned to production at the Bupyeong (about 140 people), Changwon (about 75) and Boryung (about 5) plants. Those moving to the Bupyeong or Changwon plants will be provided dormitories, and management fees (about 30,000 won per month) will be waived for one year. Moving expenses and paid leave before reporting to the new post will also be provided.
Robert Trim, vice president of labor relations and human resources at GM Korea, said, "Based on this labor-management discussion, GM Korea will work to enhance the service capabilities and competitiveness of the nationwide service network, while striving to provide the same level of customer experience anywhere in the country."
The GM Korea union said, "We humbly accept the criticism and comments from fellow members that we failed to fully preserve the nine directly run maintenance centers nationwide," but added, "We blocked the company's unilateral full closure; although insufficient, we maintained a directly run maintenance structure and system at key bases; and by establishing a new organization called the High-Tech Center to support the partner maintenance network and handle high-function maintenance, we clarified the manufacturer's responsibility, which has its own significance."
It added, "We will responsibly bring this to a close through the special committee on employment stability so that no disadvantages occur to members who unavoidably must choose reassignment or voluntary retirement," and "Based on the revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act that took effect today, we will also vigorously push forward with efforts to win bargaining with the principal contractor."