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GM Korea offers workers 3 times annual wage, tuition fees for redundancy

From Reuters - February 13, 2018

SEOUL, Feb 14 (Reuters) - General Motors South Korean unit is offering workers three times their annual base salary, money for college tuition and more than $9,000 towards a new car as part of a voluntary redundancy plan at the troubled automaker.

The package, made in a notice to employees seen by Reuters, came after GM said on Tuesday it will shutter the plant in the southwestern city of Gunsan by May and decide within weeks on the fate of its remaining three factories in the country.

Unionised workers staged a protest regarding the planned closure on Wednesday.

The so-called Voluntary Separation Programme opened to employees on Tuesday and will last until March 2, according to the internal document.

This is the most compensation we can provide given our management conditions and it will be difficult for us to offer more benefits going forward, the company said in the letter.

GM Korea has recorded a financial loss of nearly 3 trillion won ($2.8 billion) over the past four years and continues to make losses as a result of low utilisation rates, continued rises in labour costs and an excessive workforce, the letter said.

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