The South Korean division of the US automaker General Motors has negotiated a tentative agreement with its labor union. The deal manages to avoid the workers entering a potential wage strike – thus securing the production at its key base in the region.
The tentative deal is still subject for approval during a union meeting to be held on Wednesday and Thursday. Earlier this month the unit’s boss, GM Korea CEO Sergio Rocha, complained about a potential strike lowering the output at one of the most important production divisions in the Asian region.
“We can’t win it all. We will leave the deal to the judgment of our union members,” said union spokesman Jang Kyung-dae.
After announcing that GM is to withdraw the Chevrolet brand out of Europe by the end of 2015, the move lowered output at the GM Korea Gunsan plant – the main manufacturing facility for the European region. Now, the deal reached between GM and the union reverts an earlier decision – moving to secure the production of the next generation Chevrolet Cruze at the factory. Under the compromise though, the production start will not come before 2017, which could render the plant underutilized until then, affecting jobs and wages.