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The Moon government plans to provide financial assistance to the Gwangju plant, and also introduce similar government-business ventures in two other cities by June. Officials hope it will lead to a “U-turn” of Korean companies which would otherwise build factories overseas average cufflink size. “This is a bold experiment to resolve jobs and labor relations problems,” said Park Myung-joon, a senior research fellow at state-funded Korea Labour Institute, who has been involved in the project since its beginning in 2014..

The carmaking venture, the first of its kind in South Korea, is the biggest threat to date for legacy unionized auto workers, who have largely maintained high wages and benefits even with youth unemployment near a record high and the economy sluggish, Park said. “The expensive union jobs will gradually disappear.” average cufflink size. The proposed Hyundai factory will offer annual wages of 35 million won ($31,492) – just over a third of the average 92 million won that existing Hyundai workers earn, but higher than the average 33 million won salaried workers make in Gwangju..

Home to Kia Motor’s largest domestic production facility, Gwangju is South Korea’s No.2 motor city after the southeastern city of Ulsan, generating over 40 percent of its manufacturing output from the auto sector average cufflink size. Like Ulsan, which has declined as Hyundai production has retreated, Gwangju’s fortunes have waned as Kia’s output fell to its lowest level in eight years last year. Gwangju is now South Korea’s second-poorest metropolitan city, with average monthly wages some 13 percent below the nationwide average in 2017, according to labor ministry data..

Kim Jae-seung, who studied business management in college, said he is willing to apply for a blue-collar job at the planned plant average cufflink size. “Its wage is still above the average worker’s wage. In that sense, it is not a bad job. It is a good job,” the 32-year-old Kim said at a recent job fair held at the city hall. Other job seekers in Gwangju interviewed by Reuters said they too were interested given high levels of unemployment among the city’s younger workers. “There are not many quality jobs out there. Given the current economic situation, I will be thankful for the 35 million won wage,” said Goh Chang-hoon, a 27-year-old law major..

Park, the former union leader, first proposed the low-wage factory in 2014 and later took a leave of absence from Kia to work full-time for the city government. Park said he borrowed the idea from Volkswagen’s now-defunct low-cost division Auto 5000, which was created in 2001 to keep jobs from moving out of Germany. The project came to end in 2009, after the automaker won wage concessions from its powerful and highly paid legacy workers average cufflink size. The new factory would have an annual capacity of 100,000 mini, gasoline-powered SUVs starting 2021..