GM Korea's union on verge of strike as carmaker bears full tariff burden - The Korea Times

GM Korea's Chevrolet Trax Crossover / Courtesy of GM Korea

GM Korea CEO Hector Villarreal / Courtesy of GM Korea

GM Korea’s labor union is on the verge of a strike after wage negotiations reached an impasse, with tensions exacerbated by the automaker’s decision to shoulder the full cost of U.S. auto tariffs that have weighed heavily on its earnings last year.

The carmaker’s labor union has moved closer to the labor action, after an overwhelming majority of members voted in favor of a strike.

The status quo is feared to worsen the carmaker’s already deteriorating financial performance amid mounting tariff-related costs. Korean automakers, including GM Korea, face an auto tariff of 15 percent when exporting vehicles to the United States.