GM Korea’s union has plan to get workers paid
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GM Korea’s union is planning to request further government support for employees who took unpaid leave after the shutdown of the Gunsan manufacturing plant last year. The decision, outlined in a follow-up document detailing a GM Korea union meeting held on Jan. 22, could go back on the original arrangement with the company to share the cost burden of supporting employees who went on unpaid leave.
Since GM Korea’s Gunsan plant closed last year, the government provided support for six months, until November, to hundreds of workers who took unpaid leave. The company and its union decided to each cover half of the support payments, or 1.125 million won ($1,000) for every worker, for 24 months after the end of the government support. According to the document, the union will work towards gaining further government support by recategorizing unpaid-leave workers as paid-leave workers.
According to the Ministry of Employment and Labor, companies can apply for government support for workers on paid leave to partially cover their payment. If the company pays 70 percent of the pay for employees on paid leave, the government can provide around two-thirds the amount for up to 180 accounting days.
The document said the change would require agreement from the company and approval from the Labor Ministry. GM Korea said it has paid what it owes to workers on unpaid leave. It declined to comment on the union’s plans. Korea Development Bank completed last month injection of $750 million into the struggling company.
Questions & Answers
Q.What was the original arrangement between GM Korea and the union for supporting employees on unpaid leave?
What was the original arrangement between GM Korea and the union for supporting employees on unpaid leave?
The company and the union initially agreed to each cover half of the support payments for 24 months, after the government's six months of aid ended. This amounted to 1.125 million won ($1,000) for every worker.
Q.How does the union propose to secure further government support for the workers?
How does the union propose to secure further government support for the workers?
The union plans to seek further government support by recategorising the unpaid-leave workers as paid-leave workers. This change would require agreement from the company and approval from the Labor Ministry.
Q.What are the government's current provisions for companies with employees on paid leave?
What are the government's current provisions for companies with employees on paid leave?
If a company pays 70 percent of an employee's salary while they are on paid leave, the government can provide around two-thirds of that amount. This support is available for up to 180 accounting days.