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Union accepts city's mediation plan in Gwangju Global Motors labor dispute

🇰🇷 South Korea, Gwangju 13:30 Business Business2 Official updated 1 h ago first reported by 연합뉴스

In short

Jeonnam-Gwangju Integrated Special City drew up mediation recommendations on 21 October for the long-running labor dispute at Gwangju Global Motors (GGM). The recommendations cover time-off for union work, a union office and higher regular bonuses. On 22 October the GGM union said it accepts them, while calling them far short of its demands.

Read the full story 2 min read

Jeonnam-Gwangju Integrated Special City has drawn up mediation recommendations for the long-running labor dispute at Gwangju Global Motors (GGM). According to Newsis, the city held the mediation special committee of its Labor-Management-Civil-Government Council on 21 October, reached the recommendations and planned to present them to both sides. [ 1 , 2 , 3 ]

Newsis reported that the recommendations were prepared by coordinating the views of both sides and include proposals on time-off for union work, the provision of a union office and an increase in regular bonuses. Asia Economy described the recommendations as a basis for follow-up talks and said that further consultation is needed before an actual collective bargaining deal is reached. [ 2 , 3 ]

A city official told Newsis that the city had contacted both sides several times and listened to their positions before drawing up the plan. The official said the city hopes it will help the two sides, long in deadlock, to narrow their differences. Asia Economy quoted a city official as saying the recommendations offer a minimum reasonable standard for labor and management to coexist, rather than favouring either side, and that the city expects both sides to make a broad decision. [ 2 , 3 ]

Newsis and Asia Economy reported that the GGM union had demanded labor rights and held a tent sit-in outside the Gwangju city office and a hunger strike. The company, they reported, stressed compliance with a win-win agreement until cumulative production reaches 350,000 vehicles. Both outlets also mentioned a search of GGM by a labor ministry office on 1 October. [ 2 , 3 ]

On 22 October the union accepted the recommendations. Newsis reported that the Korean Metal Workers' Union Gwangju-Jeonnam branch and the GGM chapter held a press conference in front of the Gwangju city office that morning. They said they accept the plan to meet the community's wish for an early end to the conflict and for GGM's sustainable growth. [ 4 ]

The union said the recommendations fall far short of what it has demanded. It added that they matter because they recognise a minimum of union rights, including an in-house union office and time-off for full-time union officials, after two years and six months of what it called a period of union suppression. It called on the city to remain responsible until a real settlement is reached through intensive talks, and on the company to accept the recommendations, stop past suppression and unfair labor practices, and negotiate responsibly. The documents contain no response from the company. [ 4 ]

Why it matters

The documents describe a dispute that has dragged on and left both sides deadlocked. The union's acceptance gives the city's recommendations a basis for talks, but Asia Economy noted that further consultation is needed before a collective bargaining agreement is reached.

Key facts

  • On 21 October the city held the mediation special committee of its Labor-Management-Civil-Government Council and drew up mediation recommendations on the GGM dispute. [ 1 , 2 , 3 ]
  • The recommendations cover time-off for union work (timeoff), a union office and an increase in regular bonuses. [ 2 , 3 , 4 ]
  • On 22 October the GGM union, with the Korean Metal Workers' Union Gwangju-Jeonnam branch, said at a press conference that it accepts the recommendations. [ 4 ]
  • The union said the recommendations fall far short of what it had demanded, but that they recognise a minimum of union rights. [ 4 ]
  • The company has stressed compliance with a win-win agreement until cumulative production reaches 350,000 vehicles. [ 2 , 3 ]
  • A labor ministry office searched GGM on 1 October. [ 2 , 3 ]

Confirmed by several sources

  • The city drew up mediation recommendations on the GGM labor dispute on 21 October, covering time-off, a union office and higher regular bonuses. [ 1 , 2 , 3 , 4 ]
  • The union had held a tent sit-in and hunger strike, while the company stressed adherence to the win-win agreement until cumulative production of 350,000 vehicles. [ 2 , 3 ]

Still unclear

  • Whether the company accepts the recommendations. None of the documents reports a response from GGM management.
  • The exact figures and terms in the recommendations. The documents name the issues covered but give no amounts or conditions.
  • Whether a collective bargaining deal will follow. Asia Economy said further consultation is needed before an agreement is reached.

What local media are saying

Official sourcesYonhap reported that the city drew up recommendations to bridge the two sides' differences and to support follow-up talks. [ 1 ]
Business mediaNewsis and Asia Economy reported the recommendations and the city's hope that they will help narrow differences, with the city official calling them a minimum reasonable standard. Newsis later reported the union's acceptance and its demands on the city and the company. [ 2 , 3 , 4 ]

Timeline, local time

  1. Yonhap reports on 21 October that the city has prepared mediation recommendations on the GGM dispute. [ 1 ]
  2. Newsis reports on 21 October that the city held the special committee and plans to present the recommendations to both sides. [ 2 ]
  3. Asia Economy reports on 21 October that the city drew up recommendations and that further consultation is needed for a bargaining deal. [ 3 ]
  4. Newsis reports on 22 October that the union accepted the recommendations at a press conference held that morning. [ 4 ]