WASHINGTON (dpa-AFX) - The board of GM Korea Co., a unit of General Motors Co. (GM), will decide whether to file for court protection next week while it makes a last ditch effort to reach an agreement with its union on restructuring measures, according to reports
GM Korea's board of directors was widely expected to approve the bankruptcy protection this week, but it opted to delay making a decision until its meeting Monday.
The reports said the sudden twist comes after Finance Minister Kim Dong-yeon called on the company and its union to find common ground through a 'swift but sincere dialogue' on self-rescue measures that include shutting down a plant, a wage freeze, giving up bonuses and the suspension of some work benefits.
Kim also reportedly said their failure in reaching an agreement over the restructuring plan will directly threaten 14,000 jobs at GM Korea and 140,000 other posts at subcontractors.
He urged GM solidify a mid- to long-term investment plan for the Korean unit and called on the union to share the burden of cost-cutting efforts.
Copyright RTT News/dpa-AFX
© 2018 AFX News
