The management and unions of GM Korea have reached a provisional agreement for the 2026 collective agreement, which includes a base salary increase of 92,000 won and bonuses of 15 million won. Ratification by members will be voted on July 27 and 28.
The management of General Motors Korea and union representatives have reached a provisional agreement on the collective agreement and salary conditions for 2026, after 17 negotiation sessions that began on May 27. The pact, announced on July 22, includes an increase in the base salary of 92,000 won and a bonus package totalling 15 million won per worker, including a one-off payment and another linked to the company's performance in 2025.
The agreement must be ratified by union members in a vote that will take place on July 27 and 28. If the outcome is favourable, this year's negotiations will be definitively closed, alleviating labour uncertainty at the South Korean subsidiary of the American giant.
Asif Jatari, vice president in charge of global production at GM Korea's International Operations Department, valued the agreement as a significant joint advancement. In his statements, he emphasised the importance of the company and the union continuing to take shared responsibilities to ensure operational stability and sustainable growth, as well as to secure the necessary investments for the future.
The negotiation process began with a preliminary meeting on May 27 and has extended over nearly two months, with a total of 17 meetings to reach consensus. The company and worker representatives have managed to settle the economic and labour conditions for the upcoming period without resorting to pressure tactics or public conflicts, which is a relief for both the workforce and management.
For GM Korea employees, the agreement represents a tangible improvement in their remuneration, with a fixed increase in the monthly payroll and a significant extraordinary bonus. The performance-linked bonus also ties part of the remuneration to the company's performance, aligning the interests of both parties.
From the company's perspective, closing the agreement without strikes or stoppages allows for stable production and avoids economic losses. GM Korea operates plants in the Asian country, and its activities are key to the group's global strategy in the region.
The upcoming vote will be the last hurdle for the agreement to be finalised. If members support it, the collective agreement and the new base salary will come into effect according to the planned schedule for 2026, ushering in a new cycle of labour relations at the subsidiary.
You may also like
