Striking unionised workers at GM Daewoo Automotive & Technology Co. will vote next week on whether to accept a wage increase and other benefits, the car maker reportedly said on Friday.
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Reuters said South Korea traditionally faces a seasonal rise in union action every summer, but labour unrest this year reportedly poses a big headache for a government struggling to bolster sluggish local demand and business spending.
“All unionised workers are scheduled to hold a vote to approve or reject the wage deal on August 24,” a GM Daewoo spokesman told Reuters.
The agreement reportedly included a wage rise of more than 11%, quarterly payments of 150,000 won ($129.70) for childrens’ education expenses and other incentives.
The news agency said unionised workers have been on full or partial strike since July 9 demanding a pay rise of 17%. The labour unrest at GM Daewoo, which is capable of producing 470,000 vehicles a year, had cost the car maker 3,500 vehicles in lost production, the spokesman said.
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By GlobalDataReuters noted that GM Daewoo’s 8,200 member union includes workers at the Pupyong plant, the former Daewoo Motor’s oldest and biggest plant that was left out of a deal between General Motors and creditors when GM and partners took a majority stake in some of the assets of Daewoo Motor in 2002, creating unlisted GM Daewoo.
