SEOUL - Unionized workers at South Korea's GM Daewoo Automotive & Technology Co. voted on 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 150,000 won ($130.1) 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 car maker 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.