General Motors and the union at its South Korean unit have agreed an annual pay deal.
According to Reuters, citing a union spokesman, the deal on Monday avoided a major strike at a key Asian production base.
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The tentative deal includes a basic monthly salary increase of KRW83,000 (US$71.17), a bonus of KRW4m and a one-off payment of KRW6.5m.
Wage deals at Korean automakers have only been reached after lengthy strikes and sometimes violent confrontations between workers, management and police.
“Both (parties) expressed a commitment to reaching a fair and reasonable agreement based on mutual trust and understanding,” the company said in a statement cited by Reuters.
The union spokesman said GM Korea had agreed to make next-generation Chevrolet Malibu sedans on the second production line at its Bupyeong plant ending speculation the automaker would integrate the first and second production lines, reducing the plant’s scale.
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By GlobalDataSouth Korea accounts for nearly 20% of GM’s global output but labour costs there have risen nearly 50% over five years, the news agency noted.
The deal is subject to a vote by GM South Korea workers on a date to be decided at a meeting on Tuesday, the union spokesman said.
