GM factory in Korea (Image courtesy of Yonhap)
SEOUL, Jan. 28 (Korea Bizwire) — Labor unrest is intensifying at GM Korea as the automaker presses ahead with plans to shut down its company-run repair centers, prompting protests, legal action and growing concerns over disruptions to customer service.
The dispute centers on GM Korea’s decision, announced last year, to close all nine of its directly operated service centers nationwide, citing the need to secure financial sustainability amid rapid changes in the global automotive industry. The company has said it will shift after-sales services to about 380 partner repair shops and reassign affected employees to other roles within the company.
The labor union representing GM Korea workers argues that the closures amount to a de facto restructuring that could threaten job security and undermine service quality. Union leaders say partner garages would struggle to handle large-scale recalls or high-risk, precision repairs linked to manufacturing or design defects.
On Wednesday, the union said it would hold a press conference condemning the closures and stage protest events with Chevrolet vehicle owners at service centers attached to the Bupyeong and Changwon plants. The union has also formed an emergency response committee and filed an injunction with the Incheon District Court seeking to block the shutdowns.
Tensions escalated further after management announced it would stop accepting repair service requests at company-run centers and fully suspend operations starting Feb. 15.
Union ChallengesGM Korea’s Plan to End Direct Auto Service Operations (Image courtesy of Korean Metal Workers’ Union, GM Korea Branch)
Complicating matters is a separate dispute involving the Sejong logistics center, where about 120 subcontracted workers lost their jobs after GM Korea ended its contract with the logistics operator last year. Former workers have reportedly occupied the facility, preventing access by a new contractor, disrupting parts distribution and adding strain to the company’s supply chain.
GM Korea has said it is making efforts to resolve the issue by offering affected workers opportunities to apply for full-time positions, citing corporate social responsibility, while warning that continued operational disruptions are harming parts shipments and customer service nationwide.
The union, however, claims the termination of employment followed the workers’ unionization and has characterized the situation as a mass dismissal, urging the Labor Ministry to conduct a special investigation.
Despite the launch of a special labor-management council this week, talks have failed to narrow differences. Union leaders are calling for a postponement of the planned service center closures, while company executives have declined to commit to a delay, leaving the outlook for negotiations uncertain.
As the standoff drags on, parts suppliers and customers alike are increasingly caught in the fallout, raising fresh questions about the stability of GM Korea’s operations in the country.
Kevin Lee (kevinlee@koreabizwire.com)
