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GM Korea’s union partially wins lawsuit against management for overdue wages

Collected: 2017.09.05

Distributed: 2017.09.07

Source: Go Direct

Following a similar ruling that delivered a partial triumph for employees of Kia Motors demanding overdue wages under extended definition of base salary, a higher Seoul court ordered the management of GM Korea to back-pay 9 billion won ($8 million) out of 9.2 billion won demanded by office workers.

The Seoul High Court on Monday partially confirmed the lower court ruling and ordered GM Korea to pay the bulk of extra pay demands from 1,482 office workers who claimed incentives from 2004 to 2007 and 2011 to 2014 had not been counted as base salary.

As in the Kia Motors case, the court denied the management’s argument for "principle of good faith" based on labor-management agreement that excess pay demands should not aggravate financial woes for the company.

GM Korea has been counting in regular bonuses and performance-based incentives as base salary after the Supreme Court in 2014 defined them as regular salary.

GM Korea said it will appeal. The news will likely work unfavorably for the third largest automaker as it is embroiled in speculation of GM pulling out of Korea as a part of its global streamlining of money-losing overseas operations. GM Korea until last year accumulated losses of 2 trillion won.

By Woo Je-yoon and Chung Joo-won

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