GM Korea announced that it would implement a voluntary retirement program for its office workers, the 5th such program since 2009.
Management notified the trade union that the voluntary retirement program would be implemented because of financial difficulties. This program is for office workers who started work at GM Korea before 2011, and includes positions from assistant manager to managing director. Manufacturing workers are excluded from the program, and the company did not set a target number of workers for retirement.
Those who apply for the voluntary retirement program are entitled to a compensation benefit payment equal to 3 years of salary (according to tenure), tuition assistance for their children, and an automobile voucher with a value of KRW 10 million ($9,000).
Some predict that this voluntary retirement is in preparation for a retrenchment of GM, since the company sold its European business OPEL to PSA Group of France, and withdrew from the European market.
However, GM Korea explained that “the company has carried out other voluntary retirement programs on occasion, and does not have a target number of retirements. The program is designed to improve the efficiency of the organization and provide more opportunities for the workers.”