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GM union considers strike over R&D spin-off

Oct 12,2018
Unionized workers at GM Korea will cast a vote next week on a possible strike to protest against the company’s plan to establish a separate R&D corporation, the union said Thursday.

GM Korea plans to hold a shareholders’ meeting on Oct. 19 to push forward the plan to integrate design and engineering divisions into a separate R&D-focused entity. Its board of directors gave the go-ahead to the plan last week.

The union views the move as an initial step toward maintaining the new corporation as one of the U.S. carmaker’s R&D bases while selling or shutting down its production facilities in Korea in the long term.

GM Korea workers plan to hold the vote from Monday to Tuesday.

The state-run Korea Development Bank, the second-biggest shareholder in GM Korea after GM, has recently filed an injunction against the shareholders’ meeting with a local court.

But GM Korea said it will push ahead to seek approval at a shareholders meeting next week.