'Gwangju-type job' is expected to produce social confusion

Instead of drastically lowering the annual salary to half of the same industry, a model that creates jobs for Gwangju has taken its first step towards achieving fruits. The city of Gwangju received a letter from Hyundai Motor regarding its intention to participate in the project, saying, " We can consider investing in a joint venture to build a completed car factory at Gwangju Green Mountain. " The factory has drawn attention as the first case to apply the Gwangju job model of creating jobs through a social compromise between labor and management, but there have been many negative views that it is not feasible. This is why submitting a letter of intent to participate in the project by Hyundai Motor, the largest carmaker in Korea, means a lot. We hope that this letter of intent will open the door to investment by the automobile manufacturing corporation, which will be applied with the Gwangju job model for the first time.

Job creation up to national political agenda to create a jobs, Gwangju, Moon Jae-in, who as president also had a deep interest. However, when the city of Gwangju introduced the model for the first time, many people doubted the possibility of the project. Many people are willing to provide the labor force even if they receive low wages amid lack of jobs, but the resistance of local labor unions in Gwangju, where Kia Motors plant is located, and the sustainability of low wages are a challenge. This is the reason why Gwangju Mayor Yoon Jang-hyun's joint resolution on a grand compromise, which has been pushing for since the beginning of his inauguration, could not have been made until last March. Through a grand compromise, the interested parties managed to agree to maintain the average annual salary of 40 million won for workers at the new plant, which is half that of Hyundai Motor Company. The Gwangju metropolitan government has also made it possible to make an independent investment, joint investment and joint investment including local communities. When it comes to large-scale investments, it also proposed ways to reduce acquisition and property tax. Hyundai Motor Company's intention to participate in the project was also made possible by lowering the threshold for investment through such a grand compromise.

The new plant will be built at the light green mountain range near Gwangju with annual production volume of 100,000 units. If investment is carried out according to plan and factory is built, 12,000 jobs will be created directly or indirectly. Given that there are many high-paying, low-efficiency industries and the lack of jobs, it is too early to decide whether the Gwangju model of reducing wages and increasing jobs will succeed through a social consensus. It has a long way to go and many variables to expect. The plant is said to be operated not only by producing cars of a certain brand, but by consignment from the finished car maker. Since Hyundai Motor Company has announced its intention to participate in investments, chances are high that it will produce them on consignment first. Hyundai may be active in production of consignment due to cheap production costs, but labor unions are expected to protest, fearing that their work will decrease. The factory worker also agreed to receive only half of his or her salary in the first place, but he will likely demand similar wage increases, with productivity and so forth. If labor and management do not manage these variables well through continuous dialogue and compromise, it will not be easy for anyone to see success. Even so, we hope that the first business of the Gwangju model, which was achieved by the labor and management, will succeed in overcoming a disastrous job slump.

 [Yonhap News]