GM’s South Korea Workers Accept Wage Deal image

GM’s workers in South Korea have accepted a new annual wage deal, which put an end to the partial strikes which lasted for 13 days.

The South Korean workers began the partial strikes 13 days ago, at the automaker’s base where it manufactures more than 40% of its Chevrolet models. According to a report, 54.3% of the labor union voters agreed with the deal, which also includes bonuses worth $9,000 and the certainty of no layoffs.

Several months ago union officials have raised concerns that the US automaker might reduce its footprint in South Korea, which is a key manufacturing and engineering market for its small and mini vehicles, such as the Spark. GM previously announced that it will not build the nest-gen Cruze compact in South Korea, an announcement which made unions think about a possible restructuring.

GM CEO Dan Akerson has warned that the prolonged wage fight will make vehicle production here even more expensive. The automaker’s management said that the Korean labor union is the most uncooperative among its foreign peers, as workers here began strikes on July 4th and ended them on July 13th. Last year the walkout in South Korea lead to a record production loss of 40,000 vehicles.

Source: yahoo.com