General Motors has warned that it can transfer operation with North Korea because of the growing tension in the longer term from South Korea, angered trade unions in South Korea accused the company of using leverage instability ahead of tough annual labor negotiations.
North Korea has issued the flow of the threat of war with South Korea and the United States in recent weeks, Tuesday effectively shut down operation with South Korea a few kilometers from the border of an industrial park.
Rhetoric prompted General Motors chief executive Dan Akerson said late last week, the company, which has four car manufacturing plant and a transmission plant in South Korea to develop contingency plans for the safety of employees.
Exxon said it would be difficult to produce transfer from South Korea, but the escalation of tensions on the Korean peninsula will result in long-term look at the production of the first U.S. auto manufacturers, mobile.
Korean trade unions, the views are as General Motors last year to launch the first strike in four years, in a new shift system, ready to go, the annual wage negotiations and talks in a wider range of potential restructuring of its production system.
"This is a message from the Exxon trade unions said not demanding ...... they want to make the trade unions feel jittery," union spokesman Choi Jong doctrine, told Reuters reporters. "This is a threat, because the union is considered to be a stumbling block to the restructuring of its global production system."
Competitive advantage
South Korea is one of GM's largest overseas production base, producing more than 10 Chevrolet cars sold in the world, but it has lost competitiveness to win a full relations with trade unions and a rising currency, executives say.
Korea General told the union in November, it will not produce the next generation of the Cruze compact in Korea, prompting speculation output may be transferred to Europe, to support the ailing GM's Opel unit.
Exxon's involvement follows a series of labor issues it handles Universal executives warn other key business risks in Korea.
Tim Lee, GM's international operations chief, said: "We want to move to a more collaborative relationship, as with trade unions around the world," in a recent press conference, Fuping, near Seoul.
GM's South Korea trade unions, wage negotiations later this month to start the summer, uncompromising position. The union activists burst into the office of the executives in the past output overseas, as per their requirements - in one case, the pursuit of better cafeteria food - and threatened "war" GM Korea Mobile.
"When you take care of the children, this is no different," GM Korea head Sergio Rocha told Reuters in a recent interview. "I'm not saying that the union was a child, I'm just saying you need to teach, coach, guide, guidance, support, until they go."
Key production site
Like other large U.S. carmaker General, in the past few years in the United States labor costs brought about by the two-tier wage structure closer to overseas rivals, new employees pay a lower initial wages than their veteran trade union counterparts.
Korea increased business agility is seen as the key to GM's global ambitions, because the units in many other markets, especially in Europe.
South Korea's second-largest carmaker, Hyundai Motor Group, including Hyundai Motor and its subsidiary Kia, General Motors Company, the production of cars where 85% of exports.
"If you look over the past 10 years, the increase in labor costs in Korea too, to increase its labor costs are higher than the few countries in South Korea Spain For example, I do not need to tell you what is going on today in Spain? "Rocha said.
"This is the right place to invest? ...... Our future industry may be a dangerous bet," he said, citing South Korean won rose stems from ongoing litigation may increase the cost of labor union.
Labor risk to make it less attractive to maintain production in South Korea's Hyundai and Kia's domestic dominance, control more than 70% market share. GM's South Korean market share of less than 10%.
South Korea is the fifth largest car producer in the world, second only to China, the U.S., Japan and Germany, but in the domestic market, the highest in 11, according to IHS Automotive data.
Lehne, director of IHS Automotive, Henne said: "We are not optimistic about the position of the South Korean production," Other production base "by the Hyundai Motor (Hyundai Motor), and pointed out that" strong movement.
The world's fifth-largest carmaker Kia Motors to buy hyundai, saw its global sales twice over eight years, until last year, but was assembled in South Korea for 43% of the total output, in 2012, almost half of them in 2004 levels, from the company's data show.
 



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