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`GM May Not Take over Daewoo This Year`

Posted November. 28, 2001 09:08,   


The organizational negotiation between the Daewoo management and the union has reached a deadlock by the unionist request to include the `succession of employment and unions` in the negotiation agenda.

The U.S. General Motors, which is going to take over the Daewoo Motor, and the Daewoo Motor management have shown negative signs to the request of the unionist. Even the possibility of contract failure on Dec. 15 has been pointed out.

In addition, the Hyundai Motors union that is in the process of the payment and organizational negotiations with the management decided to stage a strike and will take a vote of the union member for the strike on Nov. 28.

The Daewoo management and the union have had 5 organizational negotiations by Nov. 23 but suspended their negotiation without reaching an agreement.

Choi Chong-Hak, spokesperson of the Daewoo Unions, stated "the union has yielded as much we could, by accepting 1,750 layoffs and 5,000 volunteered retirements. The succession of the employment and the unions is not an option. If the management does not guarantee it, the negotiation will be broken off."

A related source from Daewoo Motor said, "we will resume the 6th negotiation on Dec. 4. The complete succession of employment and unions is not something that GM can possibly accept."

GM had requested in its memorandum of understanding with the creditor group to exclude some articles that could damage the management authority from the organizational negotiation agendas before the final conclusion of the contract.

A high official of the Korea Development Bank remarked, "the conflicts between the management and the unions over the Daewoo Motors organizational negotiation have been anticipated. However, there is no change at all to conclude the contract by the end of this year."

Meanwhile, the Hyundai Motors unionists, who had been negotiating for payment and organizational matters, decided to go on strike after declaring the suspension of negotiation recently.

The Hyundai labor disputes came about in the midst of integrating the three organizational agreements between the 3 unions and the managements after the merge of Hyundai Morbis Auto Manufacturing Section and Hyundai Motors Service to Hyundai Motors.

The Hyundai unionists are requesting to include all items from each agreement that are beneficial to the employees in a new agreement.

Dong-Won Kim daviskim@donga.com