• 3 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 5 minutes CoV-19: China, WHO, myth vs fact
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 4 hours Energy from thin air?
  • 16 hours Fast-charging, long-running, bendy energy storage breakthrough
  • 51 mins “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 6 hours Hey NYC - Mayor De Blasio declares you must say goodbye to fossil fuels. Get ready to freeze your Virtue Signaling butts off.
  • 19 hours Can LNG Kill Oil?
  • 7 hours Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 20 hours "For the Public's Interest"
  • 2 days Solar Cells at 25 Cents Apiece (5 cents per watt)
  • 20 hours Cheap natural gas is making it very hard to go green
  • 21 hours The New Class War Exposes the Oligarchs and Enablers
  • 2 days Has Trump put the USA at the service of Israel?
  • 2 days Trump reinvented tariffs and it worked
What Will Oil Prices Do After The Coronavirus?

What Will Oil Prices Do After The Coronavirus?

The coronavirus outbreak in China…

GM Korea Faces Ultimatum: Bankruptcy Or Investment

GM Korea

GM Korea is preparing to file for bankruptcy if the management fails to reach an agreement with the company’s local labor union over a restructuring program that has to be approved within a month.

The Korean unit of the U.S. automaker has been in the red and needs urgent funds to make two upcoming payments.

By the end of April, GM Korea needs US$600 million that will be used to pay subcontractors and to compensate 1,100 workers from a local factory who opted for an offer of voluntary redundancy.

GM earlier said it would shut down the Gunsan factory by the end of May.

Yet, if it fails to reach an agreement with the labor union, it will not compensate the workers that agreed to the redundancy plan. Instead, GM said, it will file for bankruptcy.

That leaves 680 workers who did not agree to this plan and who are now at the center of the dispute with the labor union. The labor union has asked GM to assist these workers before the sides begin discussing wages under the restructuring plan, but the automaker appears to have no separate plan in the works.

By April 20, the automaker has to present to the South Korean government its turnaround plan for its local subsidiary but it wants to reach some sort of agreement with the union before that date.

The turnaround plan, worth US$2.8 billion, was announced in February.

According to a Korean member of parliament who spoke to Bloomberg at the time, the 10-year plan envisaged investments in new models, research and development, facility renovation, and business restructuring. The GM plan came about after the American auto giant initially threatened to leave South Korea altogether amid mounting losses.

Also in February, the head of the GM Korea labor union threatened a full strike if the company fired even a single worker. Now it seems that at least 680 will have to go that way, which doesn’t bode well for the negotiations.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment
  • Gary Jue on March 28 2018 said:
    South Koreans are very nationalistic and consider it a disgrace to buy American cars and trucks..

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News