Unionised workers at South Korea’s Daewoo Motor and GM Daewoo Automotive & Technology Co voted on Thursday to launch a strike over wages and other benefits, Reuters reported.

“Over 78% of 7,957 union members at Daewoo and GM Daewoo voted for a strike,” a spokesman at GM Daewoo told the news agency which noted that unlisted GM Daewoo is South Korea’s third-largest car maker and was created after General Motors and partners took a majority stake in some of the assets of Daewoo Motor last year.

The former Daewoo Motor was split into GM Daewoo and the remaining Daewoo, but the two companies have one labour union, the spokesman told Reuters.

“A detailed strike plan hasn’t yet been decided after more talks between the union and the management,” GM Daewoo reportedly said.

Reuters noted that, earlier this month, South Korea’s largest car maker, Hyundai Motor, agreed to raise wages 8.6%, more than twice the inflation rate, after nearly seven weeks of strikes cost it $US1.2 billion in lost output.

This pushed Hyundai wage rates over $20 an hour, closer to US rates of $25.63 an hour, Reuters added.