[THE INVESTOR] GM Korea’s management held talks with the labor union on April 19 for the 10th time, a day ahead of the deadline for reaching an agreement on restructuring plans.

The remaining thorny issues are how to deal with employees at the soon-to-be-shutdown Gunsan plant, and what kind of plans the company will offer, such as assigning new car models, to foster GM Korea’s future growth.

The management is calling on the union to agree to assigning 680 more employees at Gunsan to accept either voluntary retirement, transfer to other plants, or go on unpaid leave until 2022.

The government, meanwhile, has stepped back, calling on the two parties to reach a consensus soon. “Without an agreement, the challenges cannot be overcome,” said Choi Jong-ku, chairman of the Financial Supervisory Commission.

The basic restructuring principles that the government has laid out are for the US carmaker to show its devotion by assigning new car models to the local unit and commissioning a minimum annual production of 500,000 units.

In return, the government has pledged financial support. The state-run Korea Development Bank, which is currently the second-largest shareholder of GM Korea with a 17 percent stake, is expected to offer some funds after the ongoing due diligence on the carmaker.

The union, meanwhile, says in order to agree to anything, it needs the management’s promise of job security and investment such as new car assignments to activate the sluggish plant activity.

By Lee Ji-yoon (jylee@heraldcorp.com)