GM Korea’s union on verge of strike as carmaker bears nearly all tariff burden
GM Korea’s labor union is on the verge of a strike after wage negotiations reached an impasse, with tensions exacerbated by the automaker’s decision to shoulder the vast majority of the cost from U.S. auto tariffs that have weighed heavily on its earnings last year. The carmaker’s labor union has moved closer to the labor action, after an overwhelming majority of members voted in favor of a strike. The status quo is feared to worsen the carmaker’s already deteriorating financial performance amid mounting tariff-related costs. Korean automakers, including GM Korea, face an auto tariff of 15 percent when exporting vehicles to the United States. Some 86.5 percent of GM Korea’s union members favored the walkout last week. The carmaker’s union and management had held nine rounds of wage negotiations, but failed to find a breakthrough. The conflict between the two sides escalated after it turned out that GM Korea did not share its tariff burden with its U.S. headquarters, instead taking on the full burden. The union argued that the tariff-related costs should be shared with headquar
