Striking unionised workers at GM Daewoo Automotive & Technology Co. will vote next week on whether to accept a wage increase and other benefits, the car maker reportedly said on Friday.
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Reuters said South Korea traditionally faces a seasonal rise in union action every summer, but labour unrest this year reportedly poses a big headache for a government struggling to bolster sluggish local demand and business spending.
“All unionised workers are scheduled to hold a vote to approve or reject the wage deal on August 24,” a GM Daewoo spokesman told Reuters.
The agreement reportedly included a wage rise of more than 11%, quarterly payments of 150,000 won ($129.70) for childrens’ education expenses and other incentives.
The news agency said unionised workers have been on full or partial strike since July 9 demanding a pay rise of 17%. The labour unrest at GM Daewoo, which is capable of producing 470,000 vehicles a year, had cost the car maker 3,500 vehicles in lost production, the spokesman said.
Reuters noted that GM Daewoo’s 8,200 member union includes workers at the Pupyong plant, the former Daewoo Motor’s oldest and biggest plant that was left out of a deal between General Motors and creditors when GM and partners took a majority stake in some of the assets of Daewoo Motor in 2002, creating unlisted GM Daewoo.
