General Motors Company (NYSE:GM)’S Korean Unit Agreed On Tentative Agreement For Wage Increase To Avert Strikes

Posted In Automotive - By John Anderson On Tuesday, July 29th, 2014 With 0 Comments

Dallas, Texas 07/29/2014 (ustradevoice) – General Motors Company (NYSE:GM) on July 28, 2014 announced that the South Korean unit had agreed timidly on the new terms concerning wages for 2014, with the labor union. The reason for doing this is said to avert the strike.

Employees’ Basic Salary to be Increased

General Motors Company (NYSE:GM) Korea provides the international manufacturing output of the GM by 1/5th share. GM Korea had agreed to increase the basic monthly salary of all their employees by 63000 won or $61. Additionally, it agreed to offer the annual bonus of 10.5 million won a person or $10200. However, GM Korea did not reveal the average basic salary of its employees.

The Tentative Agreement on Wages

The spokesman of the South Korean labor union unit of General Motors Company (NYSE:GM) confirmed that the tentative agreement was agreed upon in terms of wages of the employees. The deal however, remained subjected to voting by the labor union members of the company. This voting shall take place in the beginning of August 2014.

GM’s Korea Business

It is worth noticing that General Motors Company (NYSE:GM) at present has four plants in Korea which are meant for auto and car parts. The strike in the year 2013 led to a vital impact on GM, even though it was brief strike. Nevertheless, it led to significant loss of output. In order to avert strikes of these kinds, the tentative agreement was agreed upon by the company. The labor terms were not reached in the year 2013 by GM Korea with the union workers, which the company expects to do now.

In the meanwhile, General Motors Company (NYSE:GM) had already announced that it was planning to cut short the dependence of the company on South Korean business as the export focal in case the negotiations on wages continued to curtail production of GM. Interestingly, the labor strikes in Korea for auto makers have become quite common. Because of the strikes in 2013, another car maker, Hyundai incurred output loss of 1.25 million vehicles amounting to $13.6 billion as of now.

About the Author

- John Anderson is a native of Florida and has received a masters in broadcast journalism from the Medill School of Journalism at Northwestern University.

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