Vehicle-building operations at GM Daewoo reportedly returned to normal on Thursday after union and management reached a tentative agreement to end a day-old strike.

According to the Associated Press (AP), unionised workers at GM Daewoo Auto & Technology’s two plants began a two-day strike on Wednesday, after the company rejected their demands for a 16.6% increase in wages and better working conditions.

The strikers returned to work after the sides struck an agreement early on Thursday, union and company officials told the news agency.

According to AP, the deal, subject to approval in a vote next week by rank-and-file union members, called for the company to increase basic salaries by 12.12% and set a firm five-day work week without cutting wages – employees currently must work on Saturdays every fourth week.

Workers at Daewoo Incheon Motor in Pupyeong, who belong to the same union as GM Daewoo workers, though their plant is not yet part of the new GM-owned company, reportedly had staged sporadic walkouts this month to demand that GM Daewoo buy their factory by the end of next year – they believe GM ownership will make their jobs more secure.

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AP noted that GM had previously said it would take over Daewoo Incheon Motor on condition of enhanced productivity and a peaceful labour-management relationship.

During their latest talks, management and union “appreciated the importance” of merging GM Daewoo and Daewoo Incheon Motor in the near future, both sides said, according to the Associated Press.