SsangYong Motor Co. has announced that it has reached a tentative agreement with its labour union leaders in this year’s wage negotiations.
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The company, which has been in talks with the union since June 4, is the first domestic carmaker to reach a tentative agreement this year.
According to the agreement, the company will raise basic salaries by 62,000 won ($60) a month and provide two 1m won onetime payments as an incentive to raising productivity and overcoming the current management crisis.
The carmaker’s union began voting on whether to accept the proposed agreement this week.
SsangYong recently announced it will shut down its plant for almost three weeks this summer because of slow demand for the fuel-guzzling vehicles, union officials said.
Both management and union at the Chinese-owned carmaker have agreed to the shutdown from 31 July to 17 August at the plant in Pyeongtaek, south of Seoul.
Workers will get 70% of their regular pay during the shutdown during which the paint shop will be refurbished.
