The usual labor unrest in big South Korean companies has subsided this year in the face of common challenge of parts supply shortage and windfall of strong global demand amid ongoing Covid-19 environment.

GM Korea Co., the Korean unit of General Motors, has become latest on the automaking scene after Hyundai Motor Co. to peacefully reach a provisional settlement in collective bargaining terms for this year.

The two parties agreed on a 30,000 won ($26.13) increase in the base salary and payment of 4.5 million won incentives. For the workers in the Bupyeong second plant, they will join forces to secure a maximum allocation of work.

Production schedule of vehicles will be extended as long as possible, considering the market demand and the new car release plan. Chevrolet Spark and vehicle engines will be reviewed for production extension from the Changwon plant, the management promised.

Oil refining and battery major SK Innovation Co. also successfully reached a settlement on collective bargaining terms in just three weeks of negotiations on Thursday. This year would make the company’s fifth strike-free year.

The management and union agreed on change in shift work, improvement in the vacation leave policy, adjustment in support of children school expenses and financial backing for better livelihood.

“This year’s negotiation successfully completed in the shortest period of time, backed by the largest number of workers, becoming an exemplary case of the management-union relationship. We’ll make new SK Innovation based on mutual trust,” said Kim Jun, CEO of SK Innovation.

SK Innovation shares ended 0.96 percent higher at 263,000 won in Seoul trading on Friday.

By Lee Yoon-jae and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]