By Jhoo Dong-chan
New GM Korea President and CEO Kaher Kazem said in an inauguration email Sept. 1 that GM Korea employees need to change to better adapt for a sustainable future for the company.
Despite endless speculation about GM’s possible departure from the Korean market, union members at the nation’s third-largest carmaker have decided to stage a partial walkout Tuesday demanding more wages and benefits.
Noticing such ominous speculations accompanying a series of militant walkouts, Kazem called for cooperation and efforts to improve the company’s competitiveness for its sustainable future.
“GM Korea has suffered huge profit losses for the last three years. Its deteriorating financial status is greatly threatening the company’s sustainability,” he said in the email.
“For GM Korea’s sustainable future, we need to change. That’s our duty. I believe in GM Korea and its workers’ potential. If we work together as a team to improve our customer experience, we will be able to overcome ongoing challenges for our sustainable future.”
GM Korea has reportedly suffered losses for the past three years. It netted losses of 353.4 billion won ($310.2 million) in 2014, 986.8 billion won in 2015 and 631.5 billion won last year. Its 2016 balance sheet showed debt of 1.29 trillion won. It also suffered a 258.9 billion won loss in the first quarter of 2017.
Despite his email to workers vowing his commitment to overcome present challenges, concerns are being raised over his appointment to the post because of his track record.
Kazem led General Motors' withdrawal and selloff of operations in India. He decided to sell off its production plants in Gujarat in March, and then cancel the carmaker's $1 million plan to expand its production line in India in May, announcing a de facto withdrawal from the market.
Despite the company's ominous external factors, union workers at GM Korea decided to stage a walkout, demanding raising their basic salary by 154,883 won, a 500 percent incentive payment, while reducing night shift work by one hour.
Compounding their decision to go on a strike, union members then met Incheon Metropolitan City Mayor Yoo Jeong-bok last week to request the local government and political circle’s support to prevent GM’s possible departure. They also staged a walkout at Bupyeong Station, Incheon, denouncing recent Korea Development Bank’s announcement saying it cannot stop Detroit's decision if it decides to shut down the Korea operation.
“It is not the time for quarrels but a time for cooperation. I don't' think GM Korea workers fully understand the gravity of the situation,” said an industry observer.
“They are now running the risk of losing their jobs. If GM Korea leaves, the impact on the nation's economy will be great considering the company's partners and subcontractors.”