Union members dismantle a protest encampment. (Photo courtesy of the GM Parts Logistics Branch of the Metal Workers’ Union’s Daejeon-Chungbuk chapter)
SEOUL, Feb. 6 (Korea Bizwire) — A labor dispute sparked by the mass dismissal of subcontracted workers at GM Korea’s Sejong logistics center has been resolved, after the automaker agreed to guarantee continued employment under a new contractor.
The Metal Workers’ Union said Friday that GM Korea, acting as the principal contractor, acknowledged responsibility and reached a tentative agreement ensuring that subcontracted employees would retain their jobs and working conditions even if the logistics contract changes hands.
The deal was approved at a union assembly, where 74 of 95 voting members supported the agreement. Workers are expected to sign new employment contracts on Friday, and a protest encampment set up at the logistics center has been dismantled.
The dispute dates back to last year, when GM Korea terminated a decade-long outsourcing contract with Woojin Logistics, resulting in the termination of employment for roughly 120 subcontracted workers at the end of 2025. The workers, who had formed a union in July, accused the company of engineering a disguised closure to sidestep labor obligations and suppress union activity.
GM Korea had maintained that hiring decisions by a new contractor were independent management matters beyond its authority. However, following mediation by labor authorities, the company shifted its stance and agreed to support employment succession.
The automaker previously offered regular employment opportunities to affected workers, but the union rejected the proposal, arguing that selective hiring and relocation plans were attempts to evade liability for alleged illegal subcontracting.
With the agreement in place, union members plan to hold a rally on Sunday to mark what they describe as a hard-won victory.
The resolution closes a chapter in a dispute that had underscored tensions in South Korea’s industrial sector over subcontracting practices and corporate accountability.
Kevin Lee (kevinlee@koreabizwire.com)
