The labor union and management of General Motors(GM) Korea again failed to narrow differences during wage negotiations.

The union and the management held talks on Monday afternoon at the firm’s headquarters in Bupyeong, south of Seoul.

The management repeated its position that the union should accept a wage freeze and no bonuses as part of efforts to cut costs and help revive the troubled firm, citing a serious credit crunch. 

However, the union refused to accept the wage proposal, and demanded management withdraw the plan to shut down the Gunsan factory, calling for an overall package deal instead of a tentative agreement.

GM Korea President and CEO Kaher Kazem said GM Korea could go bankrupt and file for court receivership unless the union and the management reach an agreement in wage negotiations by April 20th.