Unionised workers at GM Daewoo Auto & Technology Co., South Korea’s third-largest carmaker, plan to strike for two days starting on Wednesday, company and labour officials told The Associated Press (AP).
The union members are demanding a 16.6% increase in basic wages and reduced working hours and planned to strike at the company’s Changwon and Gunsan plants on Wednesday and Thursday, a spokesman at GM Daewoo told AP on condition of anonymity.
An official at Daewoo Automobile Labour Union reportedly confirmed the strike plans – he also spoke on condition of anonymity.
According to the Associated Press, GM Daewoo has suggested raising basic salaries by 10.3%, but it has not agreed to the union’s demand that GM Daewoo buy Daewoo Incheon Motor by the end of next year.
AP noted that workers at Daewoo Incheon Motor, a spin-off of the defunct Daewoo Motor Co., are not expected to join the strike though union members have staged sporadic walkouts this month because of disputes with management.
Out of 13,000 GM Daewoo and Daewoo Incheon employees, 8,200 belong to the union, the report said.
GM Daewoo, an unlisted company established in 2002 after Detroit-based General Motors Corp., acquired Daewoo Motor Co., has garnered roughly 10% of the domestic auto market, AP added.
The news agency noted that Daewoo Motor’s main assembly plant in Bupyeong, 20 kilometres (12 miles) west of Seoul, was excluded from GM’s takeover list and was renamed Daewoo Incheon Motor.
The US company has previously been reported as saying it would take over Daewoo Incheon Motor on condition of enhanced productivity and a peaceful labour-management relationship by the second half of 2006 but the labour union has called for the advancement of the schedule to the end of next year, the Associated Press said.