The future of GM Korea is looking pretty bleak as the Korea Metal Workers Union has bailed on a scheduled meeting just days before an April 20th deadline to hammer out a deal.
Wards Auto reports the meeting was cancelled after union officials objected to the sessions being monitored on closed-circuit cameras. No new talks have been scheduled and GM Korea has previously threatened to file bankruptcy if a deal can’t be worked out.
While the decision to have the meeting monitored sounds unusual, GM Korea says it’s a safety issue as several of the union negotiators were involved in the attack on the company’s executive offices earlier this month. Video from the event showed several people entering the office of GM Korea CEO Kaher Kazem and throwing chairs, knocking over plants and removing office furniture. The company later described the event as a “violent incident” that “resulted in significant damage to company property.”
Given the circumstances, a GM spokesperson told the publication the company is “ready to negotiate with the union on an urgent basis, provided the right safety measures are in place.” The spokesperson went on to say “safety is an overriding priority” and the company remains committed to providing a safe work environment for all employees.
If that wasn’t bad enough, the chairman of the Korea Development Bank has revealed it needs additional time to determine whether or not it can provide new financing to GM Korea. The process was originally slated to be complete by the April 20th deadline but the bank now says a determination won’t occur until the end of the month.
It remains unclear if GM will stick with its original deadline or extend the timeline given the latest developments. However, the company has shown it is willing to leave a number of unprofitable markets as the company sold off Opel and Vauxhall and announced plans to phase out the Chevrolet brand in India and South Africa.