SEOUL -- Striking unionized workers at South Korea's GM Daewoo Automotive & Technology Co. will vote next week on whether to accept a wage increase and other benefits, the carmaker said on Friday.
South Korea traditionally faces a seasonal rise in union action every summer, but labor unrest this year poses a big headache for a government struggling to bolster sluggish local demand and business spending.
"All unionized workers are scheduled to hold a vote to approve or reject the wage deal on Aug. 24," a GM Daewoo spokesman told Reuters by telephone.
The agreement included a wage rise of more than 11 percent, quarterly payments of 150,000 won ($129.7) for childrens' education expenses and other incentives.
Unionized workers have been on full or partial strike since July 9 demanding a pay rise of 17 percent. The labor unrest at GM Daewoo, which is capable of producing 470,000 vehicles a year, had cost the carmaker 3,500 vehicles in lost production, the spokesman said.
GM Daewoo's 8,200 member union includes workers at the Pupyong plant, the former Daewoo Motor's oldest and biggest plant that was left out of a deal between General Motors and creditors.
GM, the world's largest auto maker, and its partners took a majority stake in some of the assets of Daewoo Motor in 2002, creating unlisted GM Daewoo.