GM Daewoo, Union Head Off Strikes With New Wage Deal
Monday August 25th, 2008 / 9h53
SEOUL -(Dow Jones)- GM Daewoo Auto & Technology Co., the South Korean unit of General Motors Corp. (GM), has reached a tentative wage deal with its labor union that could bring a series of partial strikes to an end. The union has accepted an offer of a 6% monthly wage increase, or an average of KRW82,000 ($76) a month, the company said. Also, GM Daewoo will pay workers a two-month salary bonus and a lump-sum of KRW2.2 million ($2,038) designed to encourage them to boost productivity. The union will put the deal to vote Wednesday to ask its members if they will accept the management's proposal, said GM Daewoo union spokesman Kim Yun-Bog. "I expect our union members to accept the company proposal," he said. The union originally wanted an 8% raise in basic pay, compared with the management's proposed 4.25% increase, as well as a performance-based bonus for 2007 profit equivalent to four times basic salary. Unionized workers have been on partial strike for a few hours a day since early July, costing the company about 18,800 vehicles so far, said company spokesman Alex Yu. -By In-Soo Nam, Dow Jones Newswires; 822-2198-2234; In-Soo.Nam@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=J%2BM9SYVaqkJJ%2Bbbvug8zsw%3D%3D. You can use this link on the day this article is published and the following day.
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