SEOUL -- Union workers at South Korea's GM Daewoo Automotive & Technology Co. voted Tuesday to accept a pay rise of 11 percent and other benefits, a company spokesman said.
South Korea traditionally faces a seasonal rise in union action every summer, and foreign investors frequently cite labor unrest as a key deterrent to investing in the country.
"Of more than 7,800 union members who cast ballots, 68.5 percent supported the proposal agreed between union leaders and the management," said a company spokesman.
The agreement included an 11 percent rise in base salary, quarterly payments of $130.1 for children's education expenses and other incentives.
Union 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 and its partners took a majority stake in some of the assets of Daewoo Motor in 2002, creating unlisted GM Daewoo.