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GM South Korea will file for bankruptcy if no union concessions by April 20

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Staff Writer |
GM South Korea
Auto industry   GM wanted the union to reach a wage deal

General Motors (GM) said its loss-making South Korean operations would file for bankruptcy if its union did not agree to cut labor costs by April 20, heaping pressure on workers and the South Korean government to swiftly agree a rescue plan.

The U.S. automaker announced in February it would shut down one of its four factories in South Korea, and asked for government support and union concessions to stay in South Korea.

Barry Engle, the President of GM International, also told the union leader of GM Korea on Monday the unit needed to secure $600 million in operating funds by the end of April, the union said in a document reviewed by Reuters.

A GM Korea spokesman said the union concessions were needed for the automaker to present a confirmed turnaround plan to the government by April 20. GM wanted the union to reach a wage deal by the end of March, he added.

If GM Korea failed to present the plan by April 20 it would have no choice but to file for bankruptcy, the spokesman said.


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