April 23, 2018 12:18
Cash-strapped GM Korea failed to narrow differences with the carmaker's labor union in negotiations last Friday over cost-cutting measures. That raises the chances of the U.S. carmaker's Korean unit going bankrupt.
But the union said that they would continue the negotiations into Monday when a board meeting is held to decide whether to go into court receivership.
Prime Minister Kim Dong-yeon called an emergency meeting on Friday night and said the deadline for talks between labor and management has been extended until Monday.
GM announced on Feb. 13 that it would close down its assembly plant in Gunsan, North Jeolla Province with the loss of over 2,500 jobs, and demanded a massive government bailout to keep the other two plants here open.
If GM Korea goes bankrupt, the ripple effects could cost some 156,000 workers at the company and its subcontractors their jobs.
Hyundai Research Institute forecast that the closure of GM Korea would lead to W30.9 trillion in losses to the nation’s automotive industry (US$1=W1,070).
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