Mar 10 β€’ 08:46 UTC πŸ‡°πŸ‡· Korea Hankyoreh (KR)

Agreement Reached on the Closure of GM Korea's Direct Service Centers, but Conflict Lingers

GM Korea and its labor union have reached an agreement regarding the closure of direct service centers, reducing operations in three specific locations, but underlying tensions remain as the company's future evaluations could lead to further closures.

GM Korea and its labor union have concluded negotiations regarding the controversial closure of direct service centers, resulting in a compromise to reduce operations at three locations: Daejeon, Jeonju, and Changwon. Under this agreement, these centers will transition to technical service centers, consolidating the workforce from approximately 90 to around 60 employees. Additionally, a new cooperative technical support center, the High-Tech Center, will be established in Incheon, intended to assist partner service companies with a staffing of about 20 employees, a move designed to uphold some level of service. Furthermore, an agreement has been made to provide financial compensation of 10 million won ($7,500) to each union member and current employee affected by these changes.

Despite achieving a temporary safeguard against a total shutdown, the union has acknowledged the shortcomings in completely preserving the nine service centers across the nation, reflecting a sense of defeat amid ongoing criticism from members. They expressed gratitude for preventing a unilateral total closure and pointed to the establishment of the High-Tech Center as a significant step towards supporting cooperative service networks and ensuring manufacturer's responsibility within the context of automotive repair services. However, the future remains uncertain as the agreement includes a stipulation for GM Korea to regularly evaluate the business viability of these technical service centers, with concerns that this could pave the way for potential future closures.

The labor union has criticized GM Korea's strategy, interpreting a proposal involving re-evaluation of the technical center's operations post-Q1 2028 as a step toward a phased withdrawal from direct services. They fear that the ongoing validity of the centers may continuously be under threat based on management's changing assessments, thus fueling unrest among employees regarding job security and the long-term sustenance of their roles within the company.

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