Investor That Can See The Future

Chapter 156

After the first round of negotiations, requests for coverage from the American media continued.

CEO Daryl said, “We are doing our best to negotiate,” and union chairman Dennis maintained a strong stance, saying, “Whether or not there is a strike depends on the attitude of the management.”

The second round of negotiations was set a week later.

I called Taek-gyu around lunch time. It may be early in the morning in Seoul, but I usually sleep late.

[Are things going well?]

“We are negotiating. Is there anything wrong with the company?”

[then.]

Taek-gyu is on duty, and Henry and Sang-yeop senior will take care of the actual work, so it will be working fine without me.

[When are you coming back?]

“I think it will take a while.”

[come fast. I’m bored because I’m playing alone.]

“… … Okay.”

I hung up the phone and went back to the conference room. Ellie was examining her papers with one hand on her chin and turning her pen with her other hand.

i told her

“Sorry. They bring them all the way to the United States and have them work.”

At my words, Ellie raised her head.

“It’s okay. I’m here to work, what?”

The original plan was to drive around the Great Lakes and Niagara after finishing work in moderation. However, the reality is that he is caught up in work and cannot move.

It’s already my third trip to the US, but I’ve never really been on a tour like a tourist.

“Coffee is here.”

When someone bought coffee, they each pulled out the coffee they ordered.

I drank coffee and took a break. The words “R&D, Production, Sales” that I had written before were still on the whiteboard.

The R&D is done by the head office, production is done by the factory, and sales are done by the dealer. However, there is no law that says R&D and production cannot be separated just as sales are separated.

If you think about it, the separation of R&D and production has been around for a long time.

Except for a few key parts such as engines, automobile companies produce other products out of many subcontractors.

In this process, about 70-80% of the entire process is already finished.

Automobile factories only play the role of assembling delivered parts as if assembling Lego to create a single finished product.

Isn’t there a law that the assembly process must be done in a factory owned by a car maker?

In fact, each car company produces some models on consignment to other companies’ factories. It’s about launching and selling cars without owning a factory.

I remembered the union members I saw during the first round of negotiations.

They were afraid that the factory could be closed at any time depending on the circumstances of the company. Not surprisingly, they too witnessed the closing of factories and layoffs of workers during the financial crisis in the United States.

In the case of Karos, a software company took over an existing automaker with a factory. Compared to other companies, the structure of R&D and production is easy to separate.

Sales are dwindling, and factories are being built. Of course, existing factory workers will have no choice but to feel job insecurity.

GM withdrew its factories in India and Indonesia and sold its Thai and Russian subsidiaries. And recently, even the Australian factory has been closed.

This clearly showed that the headquarters can move production bases at will in pursuit of profits.

Consumers, it doesn’t matter where the car is made, and it would be good for shareholders to be more profitable, but how did the workers who lost their jobs in one day feel?

Ellie came over to me and asked.

“What do you think?”

“I am thinking about how to convince the union. How about closing the existing factories, discontinuing the vehicles being sold, and pressing pressure to produce new cars on consignment?”

In this case, the strike of the union would be meaningless. If we give you a quantity, there are plenty of places to open your arms and cheer.

At my words, Ellie smiled.

“Can you really do that?”

I thought for a moment and then shook my head.

“It seems difficult. Because it’s probably not my style. If all those people go home, they will be the head of the family. You will have a lovely wife, a child to raise, and a loan to pay off.”

Now, by some chance, I am in the position of a manager, but it is not that I do not understand the position of the workers.

Labor-management relations are, after all, human relations. Shouldn’t respect and understanding be the foundation even if they confront each other for the sake of each other’s interests?

Ellie squinted her eyes and said.

“You know what? That that Jinhoo is so attractive.”

I scratched my head in embarrassment.

“Isn’t it hard?”

“Compared to working under Jessica, this level of aegyo.”

“… … .”

Aren’t Golden Gate employees supposed to go on strike?

* * *

The second round of negotiations began.

We sat down again at the negotiating table. Looking at it again, it’s still a physical thing I can’t get used to.

What kind of work do you do in a factory to get that much muscle?

Dennis came out strong from the beginning.

“The allowance has been reduced due to overtime and overtime work, so shouldn’t it be compensated for that much?”

Daryl responded.

“Then, if overtime and overtime work increase in the future, will you lower your basic salary then?”

It’s a no-brainer. Wages, once raised, never fall.

Again, Dennis said:

“That is something to think about then.”

Even before we took over, Chrysler’s sales were very poor. Comparing it to the other big three, GM and Ford, was a pity, and even within the FCA group, he was in a bad mood.

As sales have been sluggish for a long time, the wages and welfare benefits currently being received by workers are on the low side compared to those of the same industry. So this is how you fight.

Hours have passed since the negotiations began, and the differences of opinion have not yet been narrowed.

The union insisted on a wage increase and welfare benefits, and the management said it was difficult to bring out the company’s financial statements. The union mentioned the management failure of the management and asked the union for an opportunity to participate in management, which the management dismissed as nonsense.

At this rate, negotiating all day will not give you an answer.

I’ve been thinking

Once a new car is released, profits will improve significantly. However, the profits from doing so must be reinvested in electric vehicles.

The reinvestment of profits will probably be repeated for several years.

Why wouldn’t I want to be nice to my company’s employees?

It goes without saying that the fruits of growth are not only enjoyed by shareholders and management, but also by workers. Treating workers and increasing their potential ultimately raises the value of the company.

The problem is that it’s difficult right now… … .

After thinking about it, I opened my mouth.

“I do this. We will raise wages by 6 percent every year. The same goes for various allowances. We will gradually increase welfare benefits such as vacation pay, school expenses for children, and medical expenses to match the industry average.”

Dennis shut his mouth, and Daryl shouted in surprise.

“CEO!”

I didn’t care and kept talking.

“However, due to the current circumstances of the company, it is unreasonable to implement it immediately. for a certain amount of time… … .”

Quang!

Dennis shouted, hitting the table with his fist.

“I’m tired of hearing those promises! Do you know how many times I’ve seen you say you’ll do it later and change your words once or twice?”

I spoke quickly before a fist flew at me.

“Then let’s get things right. The basic salary increase and bonus increase will be implemented from two years later, regardless of the company’s circumstances. The increase will be paid at once after two years, and the increase rate will also be added up and applied at once. Welfare benefits cannot be applied retroactively, but at least to the extent that they are not inferior.”

Dennis had a look on his face as if he was stunned by my words.

I said it like a joke.

“I know how hard it is for the workers in the auto factory to work. If you had asked me to work, I would have been lying down for half a day.”

Fortunately, a few people grinned and the atmosphere relaxed a bit.

“I will do everything I can. Instead, the union should cooperate with the company. Now is an important time for labor and management to work together. The management will do the management, but the help of the workers is absolutely necessary for production.”

A lot will change in the automotive industry in the future.

You have to move quickly to adapt to change. Firms with a rigid labor structure will be eliminated, and firms that respond flexibly will survive.

The union members looked bewildered as they did not think that I would make such concessions.

I looked at them and said.

“Now then, shall we make a negotiation plan?”

* * *

After fifteen hours of negotiations, we reached a compromise.

First, the union accepted the union’s demands for a ban on layoffs, job security, and extension of the retirement age. My proposal to implement wage increases and welfare benefits after two years was accepted by the union.

The management decides on the production line changeover and employee training, but the union will cooperate as much as possible. In addition, they have decided to cooperate with each other on various measures necessary to improve productivity.

Another important thing is that if the company becomes in danger, the largest shareholder, OTK Company, will invest and provide support.

Union chairman Dennis Bullock came up with the deal and voted for it. Members voted in favor of nearly 90 percent, and the deal was passed.

It was the result of feeling that he wanted to trust the management.

CEO Daryl and union president Dennis each signed the deal and held each other’s hands. With this, the bargaining agreement was concluded neatly.(Read more @ wuxiax.com)

The next collective bargaining agreement is in 4 years, so until then, we will be able to let go of the hour.

CNN and NBC, which had been diligently covering the workers by interviewing them, only sent out simple articles when the negotiations were concluded.

On the other hand, local Fox News treated it as an important article and evaluated it positively. For reference, Fox News, unlike CNN and NBC, has pro-Republican and pro-Ronald tendencies.

[Caros labor-management compromise, an exemplary case of labor-management cooperation!][The management promises to raise wages and expand employment, and the union promises to cooperate in improving productivity][Karos opens the way for labor-management win-win]

Even though Ronald was in Europe, he quickly linked the article and tweeted.

[Welcome to the Carlos labor-management agreement!

The American auto union is different from the Korean Eunsung Motors union, which only goes on strike.

American workers are ready to talk to management for more jobs.]

He also posted a graph comparing the wages and productivity of Eunsung’s Georgia plant and Eunseong’s Ulsan plant. Naturally, the Georgia plant had lower wages and higher productivity than the Ulsan plant.

In a nutshell, the American workers were so good, they were told to build a factory in America.

– ㅋㅋ Now, even Ronald has a silver car union.

– As a human being, the Eunseong-cha union should reflect on it. It’s strange that the company doesn’t go bankrupt.

-Eunseongcha does the same thing with the management and the union.

-Strike last year, strike last year, strike again this year. I stake all my fortune on going on strike next year and the year after that.

-Eunsung car production workers’ annual salary is almost 100 million won, isn’t it? I also want to work at Eunsung Motors.

-Eun Sung Cha is also funny, after doing everything to destroy the union of the mailing company, which is a partner company, he can’t move on to his own union.

The Eunseong-cha union, who was suddenly shot, strongly protested, and distributed press releases that contradicted each other piece by piece.

In terms of basic wages, Korean wages are low, and it is unreasonable to apply HPV (hours per vehicle) all at once due to the characteristics of Korean factories that mainly produce luxury cars.

In the name of the union leader, he formally demanded an apology from Ronald.

-I got tired of the class of union chairman Eun Sung-cha asking the president of the United States to apologize.

– Will the union do the difficult job that you can’t even dismiss?

– Are you watching, Ronald? There is a person in power who surpasses you.

– Kneel down, Ronald. This is the level of your eyes and the Eunsung Cha union!

-(Attach the photo) This is the pay stub for the workers at the Georgia factory and Ulsan factory. The basic wage is a little low in Korea, but overtime and various allowances are overwhelmingly high in Korea. The gap between national income and the average wage of workers widens.

The demand for an apology from Union Chairman Eun Seong-cha has spread like a fad, creating various parodies on the Internet.

South Korean conservative media also mentioned Ronald’s tweet and reported that labor and management should cooperate and refrain from excessive strikes.