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GM Korea reaches tentative wage deal with union

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(Globalpost/GlobalPost)

INCHEON, July 24 (Yonhap) -- GM Korea Co., the South Korean unit of U.S. automaker General Motors Co., reached a tentative wage deal with its union after days of partial strikes, a company official said Wednesday.

The agreement calls for a hike of 92,000 won (US$82) in basic salaries and 10 million won in a lump-sum incentive payment and performance-related bonus, said GM Korea spokesman Kim Byeong-soo.

Kim said some 14,000 unionized workers are set to vote on the tentative agreement on Thursday and Friday, adding the deal could be concluded if half of those who voted supported it.

A spokesman for GM Korea's labor union was not immediately reached for comment.

The deal comes after thousands of workers downed tools for 124 hours between July 4 and July 23. The partial strike disrupted the carmaker's production, though GM Korea declined to elaborate.

In February, GM announced plans to invest about 8 trillion won in South Korea in the next five years as part of its efforts to develop globally competitive products.

GM Korea launched a pilot program to end the night-shift production in March, but it did not disclose how it would make up for the production shortfall.

GM Korea has an annual production capacity of 900,000 cars per year. It said earlier this month that it had sold 70,237 vehicles in June, down 10 percent from 78,021 units in the same period last year.

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http://www.globalpost.com/dispatch/news/yonhap-news-agency/130724/gm-korea-reaches-tentative-wage-deal-union