GM workers storm Korea CEO's office after company holds back bonus

SEOUL -- General Motors workers in South Korea forced their way into company executive offices, destroying and removing furniture, shortly after the automaker’s local unit told employees that there will be no bonuses due to a cash crisis.

A video posted on YouTube showed about a dozen union members storming the CEO’s office in Incheon on Thursday, kicking and throwing chairs before removing a large desk.

The union, whose representative could not be reached for comment, was protesting the company's decision and urged the CEO to resign, according to GM Korea's spokesman.

Separately, the company confirmed in a statement what it called a "violent incident" at its executive offices that "resulted in significant damage to company property."

GM, which is seeking concessions from the union to revive its South Korean business after mounting losses, has proposed a $2.8 billion new investment plan and a $2.7 billion debt-for-equity swap to turn around the unit. After threatening to exit the country altogether earlier, the subsidiary last month said it intends to file for bankruptcy if the union fails to agree to a restructuring plan, putting pressure on employees and the government to help it stay afloat.

The incident was reported to the police, the company said, adding that it will take legal action against the workers.

Government reaction

South Korea on Friday urged GM and the union to reach a wage deal swiftly, saying the government will be able to discuss support for the money-losing unit on condition of an agreement.

The latest comments, made by the industry minister during a meeting with GM Korea's CEO, came after the union's protest over nixed bonuses. 

"Should the industrial conflict seen yesterday and today happen again, it will be difficult for (GM Korea) to gain public support and government support," Paik Un-gyu, minister of trade, industry and energy, said in a statement. 

GM's union accepted the company's demand for a wage freeze and no bonuses for this year, but opposes a proposal to cut benefits as well as its plan to shut down the Gunsan plant.

"We appreciate the ministry's interest and encouragement," a GM Korea spokesman said.

Reuters contributed to this report.