Strike At GM South Korea

Bertel Schmitt
by Bertel Schmitt

At home, GM is at peace with the unions, benefits of having the UAW as a major shareholder. Abroad, GM Europe has been in a low intensity conflict with the European unions that oppose cuts at Opel. Now, a labor conflict flares up in an unexpected part of the world: Korea.

Workers at GM’s South Korean factories will go on strike for three days next week, Reuters reports. Workers at Hyundai and Kia will vote next week on joining the action, until then, it is GM that is in the crosshairs. Says Reuters:

“GM Korea is one of the U.S. automaker’s key Asia production bases, producing a quarter of GM’s Chevrolet cars sold globally, and 98 percent of cars such as the Cruze and the Aveo subcompact sold in Europe. China is also a major export market for GM Korea’s complete knock-down kits.”

GM’s South Korean labor relations have been frayed ever since there were discussions on moving some of the Korean production to Europe. Choi Jong-hak, a spokesman for GM Korea’s labor union, warned the union would “wage a war” if GM shifts output to Europe.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Volt 230 Volt 230 on Jul 05, 2012

    Beware those buying Korean-made GM vehicles, they could be booby-trapped.

  • CJinSD CJinSD on Jul 05, 2012

    If the strike drags on a bit, it could disrupt 'production' of CKD car kits like the Cruze and Spark.

  • Bd2 Bd2 on Jul 05, 2012

    Don't see how labor conflicts are ever unexpected in Korea.

    • Highdesertcat Highdesertcat on Jul 06, 2012

      I agree. Who didn't see this coming? GM wants to take some of their jobs and ship them to Europe? What would happen in the US and Canada if GM tried to ship some of those jobs to Europe? But never fear, the US taxpayers are here, and they will continue to bail out GM through this situation as well, even if it means importing Opel cars to the US just to keep Opel going.

  • 28-Cars-Later 28-Cars-Later on Jul 06, 2012

    Korea, China, United States/Canada/Mexico, Germany and Russia. Too many brands manufactured in too many places. If you ask an Opel employee who they work for, do the say Opel AG or General Motors? How about a Daewoo employee? Holden employee? GM's foreign brands seem to have entirely too much personal identity. I think the Daewoo workers don't see it as their corporation transporting jobs to another plant, but as their evil parent owner taking their jobs and giving them to another (competing?) company. This sounds like the sort of infighting nonsense GM had in the 60s and 70s which eventually led to the demise of two well established popular marques, and the near death of a third (Buick), who is more or less in comatose with Opel derived life support. I'm not sure if GM's North American operations ever had such brand consciousness (at least in the last thirty years) but the foreign marques seem too have it in spades. GM is like a never ending headache, they get N.A. somewhat straightened out and then Holden almost goes bust. Then they fix Holden and Opel turns into a nightmare. Now trying to temporarily fix Opel, Daewoo is pissed off. It never ends. Granted most are European, but why is it Volkswagen doesn't have these sort of problems with its ten brands?

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