April 27, 2024

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[THE INVESTOR] Kaher Kazem, the newly appointed CEO of GM Korea, will meet with unionized workers at GM Korea ahead of his inauguration next week, industry insiders said on Aug. 22.
 
At the meeting, the new local head is expected to ask the labor union for cooperation to strengthen the company’s competitiveness.

 

Kaher Kazem. GM Korea.

“The new CEO is currently going back and forth between India and Korea to hand over the local unit before he takes office,” said a spokesperson of GM Korea.

GM Korea declined to confirm details of the meeting.

Kazem will head GM India until the end of this month and will begin his post as the new CEO of the Korean unit on Sept. 1, following James Kim.

“We will continue to push for wage negotiations and ask for his thoughts on major issues concerning workers, such as the upcoming expiration of the provisions of the agreement between GM and Korea Development Bank,” said an official of the GM Korea labor union.

The state-run Korea Development Bank, the second-biggest shareholder of GM Korea with a 17.02 percent stake, said in a report sent to the Bareun Party that it would not be able to stop GM Korea from pulling out of the country if it decides to do so. 

GM Korea’s labor union went on a four hourlong partial strike last week, amid mounting speculations over GM pulling out of Korea as part of its global restructuring efforts to focus on the US and China,

The official of the labor union added that employees are worried, as Kazem led the exit of GM India earlier this year. Some 400 GM workers there have been laid off due to the withdrawal.

GM Korea has been suffering a sales decline, selling a total 278,998 units between January and June this year, down 9.3 percent on-year, company data showed.

In the cited period, sales in the local market dropped 16.2 percent on-year to 72,708 units, while exports dipped 6.5 percent. 

By Kim Bo-gyung/The Korea Herald (lisakim425@heraldcorp.com)