Unionised workers at South Korea's GM Daewoo Automotive & Technology Co. voted on Tuesday to accept a pay rise of 11% and other benefits, a company spokesman told Reuters, which noted that South Korea traditionally faces a seasonal rise in union action every summer and foreign investors frequently cite labour unrest as a key deterrent to investing in the country.

"Of more than 7,800 union members who cast ballots, 68.5% supported the proposal agreed between union leaders and the management," a company spokesman reportedly said.

According to Reuters, the agreement included an 11% rise in base salary, quarterly payments of 150,000 won ($US130.10) for children's education expenses and other incentives.

The report 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 told Reuters.

The news agency added 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.

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