General Motor’s South Korean branch continues to dabble in employment issues. The auto company is currently faced with massive employment issues, axing employees left and right as union talks continue to fall on deaf ears.
According to local reports, the automaker has reportedly slashed a whopping 2,600 jobs in the previous days. The company also noted that they are going to leave the country if the union talks persist. The local government continues to be uninvolved.
Local residents have expressed their disbelief on the occurrences. They mentioned that the community “felt sorry” as the employment conundrum continues.
The country’s strong union power against companies has been a very prevalent scene locally. The great unions have been declared to give the country an impression; they call the strong phenomenon as the “Korea Discount.”
Going back to General Motor, the company employs a total of 16,000 Korean workers. The data provided was prior to the company’s current employment. Reports also revealed this is prior to the company’s announcement on shutting their Gunsan plant.
Furthermore, the company also announced their intent on filing their bankruptcy. The automakers noted that if the union talks won’t stiffen by April 20, they will be forced to pursue their bankruptcy and possibly leaving the country.
On the other hand, the local government has issued an industrial crisis on the city of Gunsa. This is the same city where a plant from General Motors is closing. This is also the same city where a shipyard was closed last year.
General Motor’s Global Performance
Looking at General Motors overall performance, the auto company is actually doing well in the international market today. The shares of GM managed to increase today after they receive a rating increase from Morgan Stanley.
According to the analysts note, the company is looking to have a great run due to the increasing infrastructure spending. The analyst from Morgan Stanley has upgraded General Motor from equal weight to overweight.
Morgan Stanley also noted that the rampant popularity of pick-up trucks can also buoy great returns for the automaker. They also noted that the truck sector will generate a whopping 65% of the automaker’s total profit this year.
Currently, GM is considered to be one of the bets as an infrastructure spending bill is looking to be closed. The bill estimated to have a whopping $2.4 trillion dollar. It is expected to be utilized for the next 10 years.
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