GM Korea reaches wage deal after three months of negotiations

GM Korea has reached a wage and collective bargaining agreement after over three months of negotiations, the Korean operation of General Motors announced on Wednesday.

Following last month’s strike, which disrupted production and slashed monthly sales to less than half of the previous year’s figures, the company now breathes a sigh of relief with the settlement.

According to GM Korea, the second tentative agreement was approved after a two-day vote, which started on Tuesday.

Of the 6,915 union members, 4,173 or 60.3 percent voted in favor of the deal. The agreement includes a 101,000 won increase in basic salary, a one-time settlement and performance bonus of 15.5 million won, and 1 million won in special holiday transportation allowances for the Lunar New Year and Chuseok.

The labor negotiations, which began on May 22, finally concluded after 23 rounds of talks. The first tentative deal was rejected in late July, leading to partial strikes that continued until the second agreement was reached on August 30.

As a result, GM Korea’s domestic and export sales plummeted to just 15,634 units in August, down 50.7 percent from the same month last year.