Nearly 2,500 GM Korea workers apply for buyout package
In Seoul, South Korea approximately 15% of General Motors’ workforce has applied for a buyout package the company has offered. The package proposal is part of the cpmany’s decision to restructure their workforce in the country as they face declining sales in Asia. The 15% constitutes about 2,500 workers as the company currently has plans to close one of its four plants in the country.
The buyout package, which is being called the ‘redundancy program’, seems to be a fair deal for many workers. The reason seems to be that many of the workers have long lost faith in the company and are at least happy to get out from the limbo they have been in for years. At the Gunsan factory the past three years have seen an immense slowdown in production with workers being furloughed and the future being up in the air. This deal at least gives the workers some finality to their fate and allows them a monetary cushion as they look for other employment.
For GM, the deal is a win-win. The company can rid itself of workers who no longer wish to work for the company while continuing with their restructuring plans. The hope is that enough employees take the package that they do not have to lay anyone off but that seems like a long shot, as GM plans to reduce their South Korean workforce by 5,000. Given the previous violent protests at the closing of other auto-making plants in the country, this deal seems to be one which the unions can deal with.