View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 27, 2015

SOUTH KOREA: GM workers agree pay deal

General Motors and the union at its South Korean unit have agreed an annual pay deal.

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.

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.

South 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.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Just Auto