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.
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“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.
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By GlobalDataThe 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.
